Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. aldean company wants to use absorption cost-plus p

Aldean Company wants to use absorption cost-plus pricing to set the selling price on a...

90.2K

Verified Solution

Question

Accounting

image

Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $120,000 in operating assets to produce and sell 12,000 units. Its required return on investment (ROI) in its operating assets is 18% The accounting department has provided cost estimates for the new product as shown below Per Unit $7.30 $5.30 $2.30 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 88,800 $1.30 69,840 Required: 1. What is the unit product cost for the new product? (Round intermediate calculations and final answer to 2 decimal places.) 2. What is the markup percentage on absorption cost for the new product? (Round intermediate calculations to 2 decimal places.) 3. What selling price would the company establish for its new product using a markup percentage on absorption cost? (Round intermediate calculations and final answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

What are the drawbacks of geothermal electricity Select all that may apply Produces sulfur pollution...

Basic Math
1.2K views

A cooler contains 100 ice cream bars There are 10 Vanilla bars 40 Mint Chocolate...

Statistics
1.2K views

The Mean Corporation would like to invest in the booming health food industry. It is considering...

Chemistry
1.2K views

The chemical reactions: CuSO4(aq) + Zn(s) → ZnSO4(aq) + Cu(s) Zn(s) + H2SO4(aq) → ZnSO4(aq) + H2(g)...

Geometry
1.2K views

Rodrigo is organizing his CD collection He has 5 pop CDs and 85 other CDs...

Geometry
1.2K views

5 Regular pentagon ABCDE is inscribed in circle G B a FG is a n...

Basic Math
1.2K views

7 Cost Volume Profit Analysis Assig i Check my work mode This shows what is...

Basic Math
1.2K views

You have discovered the base of the Empire Obi Wan Yoda C 3PO and R2...

Accounting
1.2K views

1.What is the definition of tax? Why are taxes not penalties or fines? 2.Discuss the...

Accounting
1.2K views

An 8-year project is estimated to cost $360,000 and have no residual value. If the...

Accounting
1.2K views

Sand Company's inventory balances for May are given below: Sand Company reported the following account...

Accounting
1.2K views

Amortizacin de primas El primer da del ao fiscal, una empresa emite un bono...