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The DELL Company is in the process of developing a new product called (ZZ). The...

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Accounting

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The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: Total Costs 780,000 Statements Total variable production costs Fixed manufacturing overhead Total production costs Total selling, general and administrative expenses Total costs and expenses 220.000 1,000,000 400,000 1,400.000 Units to be Produced 40.000 The company requires a $ 320,000 profit, and 20% return on assets (ROA). The company uses assets totaling $ 1.600.000 in producing. Instructions: a. Compute the price of (ZZ) using the Gross margin pricing method. (4 marks) b. Compute the price of (ZZ) using the Return on assets pricing method (4 marks) c. Prepare income statement to support your answer. (4 marks)

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