Google wants to develop a laptop to compete with Apple's MacBook Pro. Google believes the price...

 

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Google wants to develop a laptop to compete with Apple's MacBook Pro. Google believes the price of this model must be no more than Apple's price of $1,199 per unit to be competitive. Google expects to sell 20,000 units of this laptop model and has a target markup percentage of 25%. Assumed data for Google follow. Google uses the total cost method in setting its laptop price. Variable costs Direct materials Direct labor Overhead Selling, general, and administrative Fixed costs Overhead selling, general, and administrative Required: Per unit $490 60 140 10 Annual total $2,500,000 1,500,000 1. Compute Google's total cost per unit if 20,000 units are produced. Google wants to develop a laptop to compete with Apple's MacBook Pro. Google believes the price of this model must be no more than Apple's price of $1,199 per unit to be competitive. Google expects to sell 20,000 units of this laptop model and has a target markup percentage of 25%. Assumed data for Google follow. Google uses the total cost method in setting its laptop price. Variable costs Direct materials Direct labor Overhead Selling, general, and administrative Fixed costs Overhead selling, general, and administrative Required: Per unit $490 60 140 10 Annual total $2,500,000 1,500,000 1. Compute Google's total cost per unit if 20,000 units are produced.

Answer rating: 100% (QA)

To compute Googles total cost per unit when producing 20000 units we need to consider both va... View the full answer