Working Note | ||
Particular | Amount | Per Unit Cost |
No. of Unit (G) | 57500 | |
Variable Manufacturing Cost (A/G)) |
$4,665,000.00 | $81.13 |
Fixed Manufacturing Cost | ||
Facility Level | $2,330,875.00 | |
Batch Level | $345,000.00 | |
Total Fixed Manufacturing Overhead (B/G) | $2,675,875.00 | $46.54 |
Total Manufacturing Cost (A+B)/G |
$7,340,875.00 | $127.67 |
Selling & Admin Cost | ||
Variable selling & Admin Cost | $840,650.00 | |
Fixed Selling & Admin Cost | $660,495.00 | |
Total Selling & Admin Cost (c/G ) | $1,501,145.00 | $26.11 |
Life Cycle Cost ( A+B+C)/G | $8,842,020.00 | $153.77 |
Part-1 Computation of Price at 31% mark up of Manufacturing Cost | |
Total Manufacturing Cost per Unit | $127.67 |
Add; Mark Up @ 31% | $39.58 |
Total Price per part | $167.24 |
Part-2 Computation of Price at 22% mark up of full life cycle Cost | |
Full life cycle cost | $153.77 |
Add; Mark Up @ 22% | $33.83 |
Total Price per part | $187.60 |
Part-3 Computation of Price using desired Gross margin % to sales | |
Let Selling price | X |
Less: Desired Gross Margin (X x 43%) | 0.43X |
Cost | 0.57x |
Total Manaufacturing cost per Unit as calculated | $127.67 |
cost= 0.57X | |
$127.67=0.57X | |
X=$223.98 | |
Hence Price per part will be $223.98 | |
Part-4 Computation of Price using desired Gross margin % to sales | |
Let Selling price | X |
Less: Desired Margin (X x 26%) | 0.26X |
Life Cycle cos | 0.74X |
Total Life Cycle cost | $153.77 |
Life Cycle cost = 0.74X | |
$153.77=0.74X | |
X=$207.80 | |
Hence Price per part will be $207.80 |
As HOMEWORKLIB RULES , Only 4 part can be solved
Check my work Williams Inc. produces a single product, a part used in the manufacture of...
Check my work Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then choose the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...
Williams Inc. produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams...