Question: 10-4A Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this
10-4A



Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $248 of direct materials; \$28 of direct labor; \$41 variable overhead; $36 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $28 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $980 per unit. Compute the target cost unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable cos Complete this question by entering your answers in the tabs below. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $248 of direct materials; $28 of direct labor; variable overhead; $36 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $28 of fixed selli general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $980 per unit. Compute the target c unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable Complete this question by entering your answers in the tabs below. The company is a price-taker and the expected selling price for this type of phone is $980 per unit. Compute the target cost per unit if the company's target profit is 60% of expected selling price. Target cost Problem 10-4A (Algo) Pricing using total cost, target cost, and variable cost LO P6 Techcom is designing a new smartphone. Each unit of this new phone will require $248 of direct materials; $28 of direct labor; variable overhead; $36 of variable selling, general, and administrative costs; $49 of fixed overhead costs; and $28 of fixed selli general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 180% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $980 per unit. Compute the target unit if the company's target profit is 60% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable Complete this question by entering your answers in the tabs below. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. 1. Total variable cost per unit 2. Markup per unit 3. Selling price per unit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
