Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000. Fixed factory overhead cost $105,000 Fixed selling and administrative costs 35,000 Variable direct materials cost per unit 4.34 Variable direct
labor cost per unit 5.18 Variable factory overhead cost per unit .98 Variable selling and administrative cost per unit .70 The variable cost per unit for the production and sale of the company's product is:
A) $14.00
B) $12.60
C) $ 9.80
D) $11.20
D
You might also like to view...
A shared resource, such as land, air, or water, that a group of people uses collectively is a(n):
A. Collective resource. B. Global unification. C. Commons. D. Economic village.
Evidence is relevant when:
a. it clearly proves guilt or innocence. b. it has a tendency to make the existence of any fact of consequence more probable. c. it creates inferences. d. it does not come from hearsay. e. None of the above
To fully compensate a plaintiff for losses suffered for a breach of contract, punitive damages are always awarded
a. True b. False Indicate whether the statement is true or false
Allowance for Doubtful Accounts is a:
A. temporary account so its balance carries forward to the next accounting period. B. temporary account so its balance is closed (zeroed out) at the end of the accounting period. C. permanent account so its balance is closed (zeroed out) at the end of the accounting period. D. permanent account so its balance carries forward to the next accounting period.