Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup
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Pinkin Incorporated needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows:
Variable Costs per Unit | Fixed Costs (total) | ||
---|---|---|---|
Direct materials | $ 20 | Overhead | $ 85,000 |
Direct labor | 45 | General and administrative | 65,000 |
Overhead | 25 | ||
General and administrative | 55 |
Using the total cost method what price should Pinkin charge?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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