Question

Can you show your work as well. Thank you

Answer 1

Answer to Question
a	Mark up percentage using
		Cost per order	Profit	Mark up percentage
	Absorption Cost Based Pricing	222.2	3.76	1.69%
	Variable Cost based Pricing	192	3.76	1.96%
	Total Cost based pricing	223	3.76	1.69%
b	Determination of Selling price
		Cost Per order	Mark up percentage	Selling Price
	Absorption Cost Based Pricing	222.2	1.69%	225.96
	Variable Cost based Pricing	192	1.96%	195.76
	Total Cost based pricing	223	1.69%	226.76
Working
Order size	2300
VC per order	$	FC per order	$	Profit Per order
Designed Cost	42	Designed Cost	39560
Production Cost	134	Production Cost	29900
Marketing cost	16	Shipping cost	1840
	192				8645
Variable cost per order	192	Fixed Cost per order for Absorption based pricing	30.2	Profit per order	3.76
		Fixed Cost per order including Selling and distribution expenses	31