Homework Answers
Activity 13.1
Answer for 1
Cost = $10
Mark-up = 50%
Mark-up pricing formula= Cost + Markup
Markup price= $10+ 50% of $10= $15
Answer for 2
Cost = $10
Mark-up = 40%
Markup price= $10+ 40% of $10= $14
Activity 13.2
Answer for 1
Variable cost =$10
Return = 20%
Formula for target price = Variable cost / (1-Return)
Price = $10 / (1-.20) = $12.5
Answer for 2
Variable cost =$10
Return = 80%
Formula for target price = Variable cost / (1-Return)
Price = $10 / (1-.80) = $50
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Activity 13.1 - Price Calculation - Markup Pricing Cost per unit is $10. Use markup pricing...
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Exercise 19-11 Pricing with Absorption Costing $100 $30 Calculate absorption cost per unit: Direct materials Direct labor Variable overhead Fixed overhead Total Absorption Cost per unit $8 $12 600,000/50,000 $150 $60 Target Selling price per unit: Absorption Cost per unit $150 Target Selling price per unit $210 Exercise 19-11 Absorption costing and product pricing @P4 Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40%...
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $35, direct labor $24, variable manufacturing overhead $18, fed manufacturing overhead $52, variable selling and administrative expenses $13, and selling and administrative expenses $27. is desired ROI per unit is $20. Compute the marke percentage using variable cost pricing. (Round answer to decimal place 10.S .) Markup percentage 59 Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated...
Marketing by the Numbers Exercise Set One Now that you've studied pricing, break-even, and margin analysis as they relate to Connect Phone's new-product launch, use the following exercises to apply these concepts in other contexts. 1.1 Sanborn, a manufacturer of electric roof vents, realizes a cost of $55 for every unit it produces. Its total fixed costs equal $2 million. If the company manufactures 500,000 units, compute the following: a. unit cost b. markup price if the company desires a...
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