Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. green gables company makes a product that has the

Green Gables Company makes a product that has the following costs: Per year Per unit...

60.1K

Verified Solution

Question

Accounting

image

Green Gables Company makes a product that has the following costs: Per year Per unit $17.30 Direct materials Direct labour 12.90 Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses 4.20 $916,800 2.00 Fixed SG&A expenses 907,200 The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 48,000 units per year. The company has invested $360,000 in this product and expects a return on investment of 15%. Required: on absorption cost 1) Compute the markup 2) Compute the target selling price of the product using the absorption costing approach

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