the sales agreement that Alpha Company signed for job ABC indicated that the selling price for...
the sales agreement that Alpha Company signed for job ABC indicated that the selling price for the job would be cost plus 150%
a. What is the price per unit using the unit product cost is $80
b. What is the price per unit using the unit product cost is $ 73.75
c. If job ABC was a test run in which Alpha company agreed to manufacture the units at cost, what is the sales price per unit?
d. If the sales agreement for the job indicated a selling price of cost plus 200%, what is the sales price per unit?
Homework Answers
a)
Selling price per unit = Unit product cost + Margin
= 80 + 80 x 150%
= 80 + 120
= $200
b)
Selling price per unit = Unit product cost + Margin
= 73.75 + 73.75 x 150%
= 73.75 + 110.625
= $184.375
c)
Selling price per unit = Cost price per unit
If cost is $80, the selling price would be $80
d)
Selling price per unit = Unit product cost + Margin
= 80 + 80 x 200%
= 80 + 160
= $240
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