Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows: Selling...

 

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Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) Variable costs per unit: Direct material Direct labor Manufacturing overhead Selling expenses Total variable costs per unit Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecasted annual sales volume (120,000 units) In the following requirements, ignore income taxes. $ 25.00 $ 10.50 5.00 3.00 1.30 $ 19.80 $ 192,000 276,000 $ 468,000 $ 3,000,000 6. If the company's direct-labor costs do increase by 8 percent, what selling price per unit of product must it charge to maintain the same contribution-margin ratio? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Serendipity Sound, Incorporated, manufactures and sells compact discs. Price and cost data are as follows: Selling price per unit (package of two CDs) Variable costs per unit: Direct material Direct labor Manufacturing overhead Selling expenses Total variable costs per unit Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecasted annual sales volume (120,000 units) In the following requirements, ignore income taxes. $ 25.00 $ 10.50 5.00 3.00 1.30 $ 19.80 $ 192,000 276,000 $ 468,000 $ 3,000,000 6. If the company's direct-labor costs do increase by 8 percent, what selling price per unit of product must it charge to maintain the same contribution-margin ratio? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Answer rating: 100% (QA)

To maintain the same contributionmargin ratio we need to calculate the new selling price per unit af... View the full answer