Exercise 4-11B How fixed cost allocation affects a pricing decision Monarch Manufacturing Company...
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Accounting
Exercise B How fixed cost allocation affects a pricing decision
Monarch Manufacturing Company expects to make travel sewing kits during Year In January, the company made kits. Materials and labor costs for January were $ and $ respectively. In February, Monarch produced kits. Material and labor costs for February were $ and $ respectively. The company paid $ for annual factory insurance on January Year Ignore other manufacturing overhead costs.
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Assuming that Monarch desires to sell its sewing kits for cost plus percent of cost what price should it charge for the kits produced in January and February?
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