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Aldean Company wants to use absorption cost-plus pricing to set the selling price ona new...

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Accounting

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Aldean Company wants to use absorption cost-plus pricing to set the selling price ona new product. The company plans to invest $250,000 in operating assets to produce and sell 25,000 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 Total Direct materials $8.60 $6.60 $3.60 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $201,250 $2.60 $24,250 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.) 1 Unit product cost 2. Markup percentage on absorption cost 3. Selling price per unit %

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