Question

Global Devices Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 80,000 units of computer tablets are as follows:


Global Devices desires a profit equal to an 18% rate of return on invested assets of $6,000,000.
a. Determine the amount of desired profit from the production and sale of computer tablets.
b. Determine the total costs and the cost amount per unit for the production and sale of 80,000 units of computer tablets.
c. Determine the total cost markup percentage for computer tablets.
d. Determine the selling price of computertablets.


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  • CreatedFebruary 04, 2014
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