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Accounting
| Pricing | |||||
| 1. Cost Plus Pricing | |||||
| Gaelco makes 10,000 units of their top selling sweatshirt. | |||||
| Compute the Following | |||||
| Unit | total | ||||
| Direct materials | 10 | ||||
| Direct Labor | 15 | ||||
| Variable Overhead | 12 | ||||
| Fixed Overhead | 30000 | ||||
| Variable Selling and Administrative Costs | 5 | ||||
| Fixed Selling and Administrative Costs | 20000 | ||||
| A. What is the total | |||||
| cost per unit? | |||||
| B.What is the total | |||||
| cost for 10,000 units? | |||||
| C. Assuming that the desired profit is a 50% markup | |||||
| calculate the Price for one unit. | |||||
| Cost | + | markup | = | price | |
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