What is the target selling price under absorption cost pricing? (not variable) a. $127.50 b....
70.2K
Verified Solution
Link Copied!
Question
Accounting
What is the target selling price under absorption cost pricing? (not variable)
a. $127.50
b. $135.50
c. $140.25
d. $145.95
*P22-7A Stent Corporation needs to set a target price for its newly designed product EverReady. The following data relate to this new product. Per Unit Total Direct materials $20 Direct labor $40 Variable manufacturing overhead $10 Fixed manufacturing overhead $1,600,000 Variable selling and administrative expenses $ 5 Fixed selling and administrative expenses $1,120,000 The costs shown above are based on a budgeted volume of 80,000 units produced and sold each year. Stent uses cost-plus pricing methods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the account ing department provides information under both approaches using a markup of 50% on absorption cost and a markup of 80% on variable cost
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: Zin AI - Your personal assistant for all your inquiries!
