The DELL Company is in the process of developing a new product called (ZZ). The product...

  

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The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: - - Statements Total variable production costs Fixed manufacturing overhead Total production costs Total selling, general, and administrative expenses Total costs and expenses Total Costs Instructions: 780,000 220,000 1,000,000 400,000 1,400,000 Units to be Produced 40,000. The company requires a $ 320,000 profit, and 20% return on assets (ROA). The company uses assets totaling $ 1,600,000 in producing. a. Compute the price of (ZZ) using the Gross margin pricing method ( b. Compute the price of (ZZ) using the Return on assets pricing method. c. Prepare income statement to support your answer.. The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: - - Statements Total variable production costs Fixed manufacturing overhead Total production costs Total selling, general, and administrative expenses Total costs and expenses Total Costs Instructions: 780,000 220,000 1,000,000 400,000 1,400,000 Units to be Produced 40,000. The company requires a $ 320,000 profit, and 20% return on assets (ROA). The company uses assets totaling $ 1,600,000 in producing. a. Compute the price of (ZZ) using the Gross margin pricing method ( b. Compute the price of (ZZ) using the Return on assets pricing method. c. Prepare income statement to support your answer..

Answer rating: 100% (QA)

Gross margin is the difference between the cost of goods and the actual p... View the full answer