Question: price based on variable cause Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 41,000 units
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 41,000 units follow. The company targets a profit of $321,000 on this product Variable Costs per Unit Direct materials $ 91 Direct labor Overhead Selling Fixed Costs Overhead $691,000 Selling 326,000 Administrative 306,000 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.) 3. Compute the product's selling price using the variable cost method. Variable cost per unit Markup percentage Selling price
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
