Slocum Company has determined the following information about a new product. The manufacturing process of the product
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Question:
Slocum Company has determined the following information about a new product.
The manufacturing process of the product is very complex and has a higher proportion of indirect costs than direct costs. The company wants a 100% markup on cost.
The following data is available:
Product cost according to traditional costing system $4.00 per unit
Product cost according to activity-based costing system $7.00 per unit
What unit price should Slocum Company use for this new product?
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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