Question
In: Accounting
Bluebird Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
Bluebird Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows:
Variable costs: $2.50
Direct Materials 4.25
Direct Labor 1.25
Factory Overhead 0.50
Total: 8.50
Fixed Costs $25,000
Selling and Administrative expenses 17,000
Bluebird desires a profit equal to a 5% rate of return on invested assets of $642,500
a) determine the amount of desired profit from the production and sale of Product K
b) determine the total manufacturing costs and the cost amount per unit for the production of 25,000 units of Product K
c) determine the markup percentage of Product K
d) determine the selling price of Product K
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places. SHOW WORK
Solutions
ekkarill92 answered 1 year agoRelated Solutions
RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
RooPhone Inc. uses the product cost concept of
applying the cost-plus approach to product pricing. The costs of
producing and selling 5,000 units of cellular phones are as
follows: (7 points)
Variable
costs Fixed
Costs:
Direct materials
$625,000 Factory
overhead $215,000
Direct
labor 225,000 Selling
& Admin.
expenses
75,000
Factory
Overhead
200,000
Selling & admin. Exp. 150,000
$1,200,000
RooPhone desires a profit equal to a 18% rate of return on
invested assets of $550,000.
Required:
a.) Determine the amount of desired profit.
b.) Determine...
RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
RooPhone Inc. uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,000 units of cellular phones are as follows: (7 points)
Variable costs Fixed Costs: Direct materials $625,000 Factory
overhead $215,000 Direct labor 225,000 Selling & Admin.
expenses 75,000 Factory Overhead 200,000 Selling & admin. Exp.
150,000 $1,200,000 RooPhone desires a profit equal to a 18% rate of
return on invested assets of $550,000. Required: a.) Determine the
amount of...
Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing....
Willis Products Inc. uses the product cost concept of applying
the cost-plus approach to product pricing. The costs of producing
and selling 2,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$83
Factory overhead
$58,000
Direct labor
30
Selling and admin. exp.
20,000
Factory overhead
26
Selling and admin. exp.
21
Total
$160
Willis Products desires a profit equal to a 25% rate of return
on invested assets of $116,560.
a. Determine the...
Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing....
Willis Products Inc. uses the total cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$99
Factory overhead
$136,000
Direct labor
36
Selling and admin. exp.
44,000
Factory overhead
30
Selling and admin. exp.
25
Total
$190
Willis Products desires a profit equal to a 20% rate of return
on invested assets of $319,600.
a. Determine the...
Hummingbird Company uses the product cost concept of applying the cost-plus approach to product pricing. The...
Hummingbird Company uses the product cost concept of applying
the cost-plus approach to product pricing. The costs and expenses
of producing 25,000 units of Product K are as follows:
Variable costs:
Direct materials
$2.50
Direct labor
4.25
Factory overhead
1.25
Selling and administrative expenses
0.50
Total
8.50
Fixed costs:
Factory overhead
$25,000
Selling and administrative expenses
17,000
Hummingbird desires a profit equal to a 5% rate of return on
invested assets of $642,500.
a. Determine the amount of desired...
Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The...
Tidewater Company uses the product cost concept of applying the
cost-plus approach to product pricing. The cost and expenses of
producing and selling 50,000 units of Product K are as follows:
Variable costs:
Direct materials
$5.00
Direct labor
8.50
Factory overhead
2.50
Selling and administrative expenses
1.00
Total
$17.00
Fixed costs:
Factory overhead
$50,000
Selling and administrative expenses
34,000
Tidewater desires a profit equal to a 10% rate of return on
invested assets of $1,285,000.
a. Determine the amount of...
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The...
MyPhone, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,380 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$64
Factory overhead
$198,000
Direct labor
31
Selling and administrative expenses
71,300
Factory overhead
23
Selling and administrative expenses
21
Total variable cost per unit
$139
MyPhone desires a profit equal to a 16% rate of return on
invested assets of $600,700.
a. Determine the...
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The...
MyPhone, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,380 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$64
Factory overhead
$198,000
Direct labor
31
Selling and administrative expenses
71,300
Factory overhead
23
Selling and administrative expenses
21
Total variable cost per unit
$139
MyPhone desires a profit equal to a 16% rate of return on
invested assets of $600,700.
a. Determine the...
Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing....
Voice Com, Inc., uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,010 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$62
per unit
Factory overhead
$200,200
Direct labor
38
Selling and admin. exp.
69,900
Factory overhead
26
Selling and admin. exp.
20
Total variable cost per unit
$146
per unit
Voice Com desires a profit equal to a 16% rate of return on
invested...
Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the total cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 7,500 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$ 85
per unit
Factory overhead
$321,900
Direct labor
39
Selling and administrative
expenses
113,100
Factory overhead
26
Selling and administrative
expenses
20
Total
variable cost per unit
$170
per unit
Smart Stream desires a profit equal to a 14% return on invested
assets...
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