Question: Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 10% markup to full costs and currently has excess capacity. The
Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 10% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:
For long-run pricing of the cell phones, what price will most likely be used by Quick Connect?
Output units Machine-hour:s Direct manufacturing labor-hours 1600 phones 650 hours 1000 hours Direct materials per unit Direct manufacturing labor per hour Variable manufacturing overhead Fixed manufacturing overhead costs Pro $35 $9.60 $13,200 $64,000 $48,000 $59,200 costs duct and process design costs Marketing and distribution costs
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