Solution:
Desired income = $490,000*15% = $73,500
Selling and administrative expenses = Sales - Cost of goods sold - Profit
= (19000*$100) - (19000*$70) - $73,500 = $496,500
The following information is available on Bruder Inc.'s Product A: Number of units sold each year...
The following information is available on Bruder Inc.'s Product A: Number of units sold each year Selling price per unit Unit product cost Investment in Product A Required return on investment 19,000 $ 100 $ 70 $490,000 15% The company uses the absorption costing approach to cost-plus pricing described in the text. Based on these data, the total selling and administrative expenses each year are: (Round your Intermediate calculations to 2 decimal places.) į Multiple Choice 0 $239,000 0 $840,000...
The following Information is available on Bruder Inc.'s Product A: Number of units sold each year Selling price per unit Unit product cost Investment in Product A Required return on investment 23,000 $ 70 $ 40 $530,000 11% The company uses the absorption costing approach to cost-plus pricing described in the text. Based on these data, the total selling and administrative expenses each year are: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $690,000 $631,700 $283,000 $390,000...
Kirgan, Inc., manufactures a product with the following costs: Per Year Per Unit $26.40 $15.40 $ 3.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,545,600 $ 3.50 $1,514,700 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 96,000 units per year. The company has invested $370,000 in this product and expects...
Magney, Inc., uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 38,000 units next year, the unit product cost of a particular product is $61.50. The company's selling and administrative expenses for this product are budgeted to be $814,000 in total for the year. The company has invested $440,000 in this product and expects a return on investment of 11%. The selling price for this product...
Suppose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash Inflows using a 12% discount rate will be: Multiple Choice greater than under a 10% discount rate. less than under a 10% discount rate. O equal to that under a 10% discount rate. sometimes greater than under a 10% discount rate and sometimes less; It depends on R. An increase in the discount rate: Multiple Choice...
Ecob Corporation uses the absorption costing approach to cost-plus pricing as described in the text to set prices for its products. Based on budgeted sales of 32,000 units next year, the unit product cost of a particular product is $61.80. The company's selling and administrative expenses for this product are budgeted to be $387600 in total for the year. The company has invested $400,000 in this product and expects a return on investment of 11%. The markup on absorption cost...
Quamma Corporation makes a product that has the following costs: PerYear Direct materials Direct labor Variable manufacturing Overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $17.20 $14.80 $ 2.10 $802,800 $ 3.80 $561.000 The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on budgeted production and sales of 36,000 units per year. The company has invested $610,000 in this product and...
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