Remaining Time: 26 minutes, 52 seconds Question Completion Status: Alba Company is considering the introduction...
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Accounting
Remaining Time: 26 minutes, 52 seconds Question Completion Status: Alba Company is considering the introduction of a new product. To determine the selling mice of this product, you have gathered the following informations The direct material per unit $2.000 The direct labor per unit $2.450 The variable manufacturing.cost per unit $1.800 The total lixed manufacturing costs S1,750,000 The vanable selling and administration cost per unit $1.246 The total fixed selling and administration costs $484.000 If the company requires rate of return 1 on its investments and 55,500,000 investments are needed. The total direct materials available to be used in the production in $2,000,000 Required 1. If the company we absorption costing approach to cont plus pricint, compute The unit product cout 6. The madup percentage The selling price per unit 2. Assume that the company is considering the introduction of other new product. If the target selling price per unit is 57.500 and the company investing 57.000.000 to purchase equipment needed to produce unit. If the company requires rate of toturn on its investments 18%, compute the target cost per unit 3. Asume Alla produces 2 product. The first product is the unique one and Alba is the only company that produces this product, whereas several companies produce the second product and there is a strong competition in the market regarding this product. Which pricing approach heter applicable for pricing of each product, and why

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