Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing....

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Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $99 Factory overhead $102,000 Direct labor 36 Selling and admin. exp. 33,000 Factory overhead 30 Selling and admin. exp.. 25 Total $190 Willis Products desires a profit equal to a 25% rate of return on invested assets of $221,292. a. Determine the variable costs and the cost amount per unit for the production and sale of 3,000 units of medical tablets. Total variable costs Variable cost per unit 570,000 190 per unit b. Determine the variable cost markup percentage per unit. Round your percentage answer to one decimal place. 24.3 X % c. Determine the selling price per unit. Use the rounded variable cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar. 29 X per unit Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $99 Factory overhead $102,000 Direct labor 36 Selling and admin. exp. 33,000 Factory overhead 30 Selling and admin. exp.. 25 Total $190 Willis Products desires a profit equal to a 25% rate of return on invested assets of $221,292. a. Determine the variable costs and the cost amount per unit for the production and sale of 3,000 units of medical tablets. Total variable costs Variable cost per unit 570,000 190 per unit b. Determine the variable cost markup percentage per unit. Round your percentage answer to one decimal place. 24.3 X % c. Determine the selling price per unit. Use the rounded variable cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar. 29 X per unit

Answer rating: 100% (QA)

Answer Your analysis for parts a and b looks correct Lets break down c to determine the selling pric... View the full answer