Papillon Co. has determined the following per unit amounts: Direct materials $30 Fixed selling and administrative $60
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Question:
Papillon Co. has determined the following per unit amounts:
Direct materials | $30 | Fixed selling and administrative | $60 | ||||||
Direct labor | 36 | Variable overhead | 24 | ||||||
Desired ROI | 33 | Variable selling and administrative | 15 | ||||||
Fixed overhead | 45 |
1) The target selling price using the variable-cost approach is
2) The cost base using the absorption-cost approach is
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