Yaltz Inc. produces and sells lamp shades. It is currently
planning to launch a new children’s line. The following are the
projected costs based on projected units sold of 104,500.
Variable costs per unit: | ||
Direct materials | $11.35 | |
Direct labour | 12.05 | |
Variable manufacturing overhead | 8.50 | |
Variable selling and administrative expenses | 5.10 |
Annual fixed costs and expenses: | ||
Manufacturing overhead | $334,400 | |
Selling and administrative expenses per unit | 1.85 |
Yaltz Inc. will invest $1,097,000 for this new launch and would
like to earn a $14.93 per unit return on its investment.
Calculate the total caost per unit using variable costing
Calculate the markup percentage on the total variable cost per unit
calculate the target price per unit
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