Question: Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 25,000 units follow. The company targets a

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 25,000 units follow.

The company targets a profit of $305,000 on this product.

Variable Costs per Unit Direct materials Direct labor Overhead selling, general and

1. Compute the total variable cost and the markup percentage.

2. Compute the dollar markup per unit on variable cost.

3. Compute the selling price per unit.

Variable Costs per Unit Direct materials Direct labor Overhead selling, general and administrative Fixed Costs (total) Overhead selling, general and administrative 5 $.75 45 30 20 $ 675,000 600,000

Step by Step Solution

★★★★★

3.38 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Variable cost per unit 170 2 Markup percentage 3897 3 Selling pr... View full answer

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!

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

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

Skull Co. makes snowboards and uses the total cost method in setting product price. Its costs for producing 10,000 units follow. The company targets a 12.5% markup on total cost. 1. Compute the total...

Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 10,000 units follow. The company targets a profit of $300,000 on this product. 1....

Koopman Company began operations on January 1, 2009 and uses the FIFO inventory method for financial reporting and the average-cost inventory method for income taxes. At the beginning of 2011, the...

Murray, Inc., purchased a new inventory item two times during the month of April, as follows: Apr. 5 100 units @ $5.00 Apr. 15 100 units @ $5.05 a. What is the amount of the ending inventory of this...

Refer to E14-18 and Auburn Limited. E14-18 On June 30, 2007, Auburn Limited issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date...

Lima Company enters into a contract to sell $9,000 of merchandise, n/30. The cost of the merchandise to Lima is $4,500. Limas management uses the expected value method to estimate returns and has the...

Sayles Co. uses a line of credit to help finance its inventory purchases. Sayles sells ski equipment and uses the line of credit to build inventory for its peak sales months, which tend to be...

On January 1, 2017, Osborn Inc. sold 12% bonds having a maturity value of $800,000 for $860,652, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017 and mature on...

Which of the following statements is true? If a statement is true, prove it. If it is false, give a counterexample. (a) If P (A) + P (B) + P (C) = 1, then the events A, B, and C are disjoint...

Which of the following statements about quantitative easing (QE) and open-market purchases is true? Multiple Choice QE is similar to open-market purchases in that both are aimed at reducing...

The articles of Valley Farms Inc. inadvertently indicated that its agent for service of process was Samantha Roberts rather than Samantha Robertson. Luisa owes the corporation $30,000 and is...

1) Have you ever applied the doctrine of mean in your moral evaluation? Share the moment in your life when you applied this moral principle but if you disagree with the notion of this principle,...

We've learned how contract law in the United States has developed over time and have used several sources for learning particular rules of contract law. Which of the following best describes the most...

What does Auld say is the challenge in the Phase II design and implementation of "NSMD" certification programs?

Using Newton-Raphson method, find the real root of the function write code c++ f(x) = cos(x) x with accuracy at least 1%. Start with x0 = 0.1. #include #include using namespace std; double f(double...

r = 0.18 Find the coefficients of determination and non-determination and explain the meaning of each.

What are the three major elements of product costs in a manufacturing company?

Discuss some of the major benefits to be gained from budgeting.

Below are listed various costs that are found in organizations. 1. Hamburger buns in a Wendys outlet. 2. Advertising by a dental office. 3. Apples processed and canned by Del Monte. 4. Shipping...

Fill in the blanks to make the following statements correct. a. Economists say that oligopolistic firms exhibit _______ behaviour. These firms are aware of and take account of the decisions of...

The diagram below shows the demand, marginal cost, and marginal revenue curves for a monopolist. Redraw the diagram for yourself to be able to answer the following questions. a. If the monopolist...

The table below provides price, revenue, and cost information for a monopolistically competitive firm selling drive-through car washes in a large city. a. Complete the table. b. Plot the demand,...