Homework Answers
Answer-
Given- Estimated Produced Units = 30,900
Units Produced in January = 3,800
Units Produced in February = 1,900
Material Cost of January = $17,900
Labor Cost of January = $ 24,800
Material Cost of February = $ 9,500
Labor Cost of February = $ 12,400
Annual Rental Fee = $ 401,700
Profit Margin = 25%
To Find- Price per unit for January and February.
Solution-
1- Selling Price per unit for January -
Total Cost = Material Cost + Labor Cost + Rental Fee
Total Cost = 17,900 + 24,800 + 49,400
= $ 92,100
Cost Price per unit = Total Cost / Units Produced
Cost Price per unit = 92,100 / 3,800
= $ 24.24
Selling price per unit = Cost Price + (Cost Price per unit * % of Profit Margin on Cost )
= 24.24+( 24.24 *25/100)
= 24.24 + 6.06
= $ 30.3 ( Answer)
Note- Rental Fee for January
= 401,700/30900
= 13
So, 3800 * 13 = $ 49,400
2- Selling Price per unit for February-
Total Cost = Material Cost + Labor Cost + Rental Fee
= 9,500 + 12,400 + 24,700
= $ 46,600
Cost Price per unit = Total Cost / Units Produced
Cost Price per unit = 46,600 / 1900
= $ 24.53
So, Selling price per unit = Cost Price + (Cost Price per unit * % of Profit Margin on Cost )
Selling Price per unit = 24.53 + ( 24.53 * 25 / 100)
= 24.53 + 6.13
=$ 30.66 ( Answer)
Note- Rental Fee for February
= 401,700/30900
= 13
So, 1900 * 13 = $ 24,700
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