Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs

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Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs were:

Direct materials $125,000

Direct labor 55,000

Factory overhead 60,000

Management has decided that the mark-on percentage necessary to cover the product's share of selling and administrative expenses and to earn a satisfactory profit is 30%. The selling price per blanket should be:

A. $12.00.

B. $15.60.

C. $23.60.

D. $31.20.

Related Book For answer-question

Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Posted Date: Nov 02, 2018 11:23 AM

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Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs

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125000 55000 6... View the full answer

Financial and Managerial Accounting

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