Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself...

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Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Total Annual Costs (10,000 units) $132,000 62,000 Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Required: 136,000 102,000 $ 432,000 a. Compute CPT's unit selling price that will yield a profit of $218,000, given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $194,100. c. Management belleves that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)? Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Total Annual Costs (10,000 units) $132,000 62,000 Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Required: 136,000 102,000 $ 432,000 a. Compute CPT's unit selling price that will yield a profit of $218,000, given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $194,100. c. Management belleves that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)?

Answer rating: 100% (QA)

Answer a To compute CPTs unit selling price that will yield a profit of 218000 we need to consider the total costs and the number of units sold Total ... View the full answer