Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $150 25 40 25 Total variable costs $240 Variable cost amount per unit Fixed costs: Factory overhead Selling and admin. exp. Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. $350,000 140,000 a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. % c. Determine the selling price of cellular phones. If

Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $150 25 40 25 Total variable costs $240 Variable cost amount per unit Fixed costs: Factory overhead Selling and admin. exp. Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. $350,000 140,000 a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places. % c. Determine the selling price of cellular phones. If

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

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Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
roduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $199,200 Direct labor 31 Selling and admin. exp. 70,300 Factory overhead 23 Selling and admin. exp. 22 Total variable cost per unit $166 per unit MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a. Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b. Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…
Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 73 per unit Factory overhead $314,500 Direct labor 34 Selling and admin. exp. 110,500 Factory overhead 22 Selling and admin. exp. 17 Total $146 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $932,960. a. Determine the total costs and the total cost amount per unit for the production and sale of 8,500 units of cellular phones. Round the cost per unit to two decimal places. Total costs Cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % c. Determine the selling price of cellular phones.…
Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,580 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $79 Factory overhead $201,200 Direct labor 31 Selling and administrative expenses 68,500 Factory overhead 24 Selling and administrative expenses 19 Total variable cost per unit $153 Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 4,580 cell phones. b. Determine the product cost per unit for the production of 4,580 of cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per…
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 37 Selling and admin. exp. 71,400 Factory overhead 22 Selling and admin. exp. 18 Total variable cost per unit $144 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 5,310 units of cell phones. 2$ b. Determine the product cost per unit for the production of 5,310 of cell phones. If required, round your answer to nearest dollar. per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost per unit Markup per unit Selling price…
Product Cost Concept of Product Costing Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $90 Factory overhead $199,900 Direct labor 32 Selling and administrative expenses 70,200 Factory overhead 24 Selling and administrative expenses 19 Total $165 Smart Stream wants a profit equal to a 13% rate of return on invested assets of $599,500. a. Determine the amount of desired profit from the production and sale of 5,490 cellular phones. b. Determine the product cost and the cost amount per unit for the production of 5,490 cellular phones. If required, round your answer to nearest dollar. c. Determine the product cost markup percentage for cellular phones. Rounded to two decimal places. d. Determine the selling price of cellular phones. Round to…
Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 6,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 85 per unit Factory overhead $279,000 Direct labor 39 Selling and admin. exp. 98,000 Factory overhead 26 Selling and admin. exp. 20 Total $170 per unit Smart Stream wants a profit equal to a 16% rate of return on invested assets of $833,630. a. Determine the total costs and the total cost amount per unit for the production and sale of 6,500 units of cellular phones. Round the cost per unit to two decimal places. Total costs $fill in the blank 1 Cost amount per unit $fill in the blank 2 b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.fill in the blank 3% c. Determine the selling price of…
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 90 per unit Factory overhead $223,800 Direct labor 41 Selling and admin. exp. 78,600 Factory overhead 27 Selling and admin. exp. 22 Total $180 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $630,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 4,500 units of cellular phones. Round to two decimal places. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones.fill in the blank 3 % c. Determine the selling price of cellular phones. Round to…
Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,390 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Voice Com desires a profit equal to a 15% rate of return on invested assets of $600,200. a. Determine the amount of desired profit from the production and sale of 5,390 cell phones. $90 38 27 19 Markup Selling price $174 Fixed costs: Factory overhead Selling and administrative expenses b. Determine the product cost per unit for the production of 5,390 of cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit per…
Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $70 Factory overhead $199,700 Direct labor 35 Selling and administrative expenses 69,300 Factory overhead 27 Selling and administrative expenses 21 Total variable cost per unit $153 MyPhone desires a profit equal to a 15% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. $ 89,775 V b. Determine the product cost per unit for the production of 4,950 of cell phones. Round your answer to the nearest whole dollar. $ 853,100 X per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 30.83 d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total…
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Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,440 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $67 Factory overhead $199,800 Direct labor 40 Selling and administrative expenses 69,600 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $151 Voice Com desires a profit equal to a 13% rate of return on invested assets of $601,300. a. Determine the amount of desired profit from the production and sale of 5,440 cell phones.$fill in the blank 1 b. Determine the product cost per unit for the production of 5,440 of cell phones. Round your answer to the nearest whole dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.fill in the…