Phoenix, Inc. manufactures widgets. The target sales price is $440 per unit. The company desires a 40% net profit margin on its products. What is the company's target full-product cost per unit using target pricing?
A) $176
B) $616
C) $704
D) $264
D .D)
Target sales price per unit $440
Less: Desired net profit ($440 x 40%) 176
Target cost per unit $264
You might also like to view...
The number of times the merchandise inventory turned over, or was sold, during the accounting period is called the ____________________
Fill in the blank(s) with correct word
Self-employment income is the net income of a trade or business run by an individual
Indicate whether the statement is true or false
The ability to purchase a product is a function of
A. buying power. B. desire. C. willingness. D. authority. E. needs.
Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:??MachiningCustomizing?Machine-hours19,00013,000?Direct labor-hours2,0009,000?Total fixed manufacturing overhead cost$98,800$84,600?Variable manufacturing overhead per machine-hour$2.10??Variable manufacturing overhead per direct labor-hour?$3.60During the current month the company started and finished Job K369. The following
data were recorded for this job:?Job K369:MachiningCustomizing?Machine-hours9010?Direct labor-hours2050Required:Calculate the total amount of overhead applied to Job K369 in both departments. What will be an ideal response?