Question: Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 37,000 units follow. The company targets a

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 37,000 units follow. The company targets a profit of $317,000 on this product.

Variable Costs per Unit
Direct materials $ 87
Direct labor 57
Overhead 42
Selling, general and administrative 32

Fixed Costs (total)
Overhead $ 687,000
Selling, general and administrative 624,000

1. What is the total variable cost and the markup percentage? 2. What is the dollar markup per unit on variable cost? 3. What is the selling price per unit?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Exercise 2 3 - 1 2 ( Algo ) Pricing using variable costs LO P 6 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 3 2 , 0 0 0 units follow....

Q:

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 2 0 , 0 0 0 units follow. The company targets a profit of $ 3 0 0 , 0 0 0 on this...

Q:

Rios Co. makes drones and uses the variable cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a profit of \(\$ 300,000\) on this product. 1....

Q:

B C D F Colt Company produces two skateboard models. Machine time per unit for Hero is 3 two hours and for Flip is one hour. The machine's capacity is 1,600 hours per year. 4 Colt can sell up to 500...

Q:

IE Exercise 23-12 (Algo): Pricing using variable costs LO P6 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 31,000 units follow. The...

Q:

Check my work Exercise 23-12 (Algo) Pricing using variable costs LO P6 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 39,000 units...

Q:

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a profit of $300,000 on this product. Variable...

Q:

Exercise 10-12 (Algo) Pricing using variable costs LO P6 Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 32,000 units follow. The company...

Q:

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 41,000 units follow. The company targets a profit of $321,000 on this product. Variable...

Q:

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 26,000 units follow. The company targets a profit of \\( \\$ 306,000 \\) on this product....

Q:

You are planning to structure the acquisition as a partnership with two other investors using the most favorable financing option. You are the general partner and plan to contribute 20% of the...

Q:

You have recently been elected president of the United States. One of your most popular positions is that you want to reduce the costs of doing business in the United States. When asked how you...

Q:

Indicate whether each transaction in an operating activity, investing activity, financing activity, or non cash investing and financing activity. purchased a machine for $ 3 0 , 0 0 0 , giving a long...

Q:

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....