Product Pricing using the Cost-Plus Approach Concepts;
Differential Analysis for Accepting Additional Business
Display Labs Inc. recently began production of a new product,
flat panel displays, which required the investment of $1,980,000 in
assets. The costs of producing and selling 9,900 units of flat
panel displays are estimated as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$99
Factory overhead
$396,000
Direct labor
21
Selling and administrative expenses
198,000
Factory overhead
45
Selling and administrative expenses
39
Total
$204...