In: Accounting
Answer 1)
Calculation of selling price based on mark up on manufacturing cost
Selling price = Total manufacturing cost + 60% of total manufacturing cost
= $ 200 + (200 X 60%)
= $ 200 + $ 120
= $ 320
Therefore selling price based on 60% mark up on manufacturing cost is $ 320.
Answer 2)
Calculation of selling price based on mark up on full cost
Particulars |
Amount per unit (in $) |
Manufacturing cost |
200 |
Marketing cost |
50 |
Shipping cost |
30 |
Allocated research and development cost |
40 |
Total cost |
320 |
Add: mark up ($ 320 X 10%) |
32 |
Selling price |
352 |
Therefore selling price per unit based on 10% of full cost is $ 352.