Question: Product Pricing using the Cost - Plus Approach Methods; Defferential Analysis for Accepting Additional Business estimated as follows: table [ [ Variable costs per

Product Pricing using the Cost-Plus Approach Methods; Defferential Analysis for Accepting Additional Business estimated as follows:
\table[[Variable costs per unit:],[Direct materials],[Direct labor],[Factory overhead],[Selling and administrative expenses],[Total variable cost per unit]]
Funed costs:
Factory overhead ,$1,000,000
Selling and administrative expenses ,400,000
Digital Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Diglas Displays has decided to use the cous-plus approach to product pricing and has indicated inat the displays must earn a 15% return on invested assets.
Required:
Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar.
Determine the amount of desired profit from the production and sale of flat panel displays.
Assuming that the product cost method is used, determine the following:
a. Cost amount per unit
b. Markup percentage
C. Selling price per unit
5
3.(Appendix) Assuming that the total coat method is used, determine the following:
a. Cost amount per unit
Product Pricing using the Cost - Plus Approach

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