Calculate the initial selling price of the product, Financial Accounting


(a) The following output levels and production costs have been recorded over the last three periods:

1348_Calculate the initial selling price of the product.png


Using the high-low method, estimate the:
(i) variable costs per unit;
(ii) total fixed costs per period;
(iii) total costs that would be incurred in a period at an output of 8,500 units.

(b) A company is launching a new product. The variable cost of the product is $4.50 per unit and fixed costs total $21,000 per period. The initial selling price is to be set by adding a mark-up of 10% to total unit cost based on estimated sales of 6,000 units per period. The company does not hold any inventory.

Required:  Calculate the initial selling price of the product.

Posted Date: 10/24/2013 5:38:07 AM | Location : United States

Related Discussions:- Calculate the initial selling price of the product, Assignment Help, Ask Question on Calculate the initial selling price of the product, Get Answer, Expert's Help, Calculate the initial selling price of the product Discussions

Write discussion on Calculate the initial selling price of the product
Your posts are moderated
Related Questions
Assertion -Implicit or explicit representations by an entity's management which are embodied infinancial statement components and for which AUDITOR obtains and evaluates evidential

Explain:- Q.1 Explain the ways in which the needs of internal and external users of accounting information are the same and different. Q.2 Why is it important for financial sta

Illustration of double entry The balances on the current accounts of a head office and branch were Ksh 698,000, before the transactions listed below: Normal 0

Question: A company produces and sells a single product, the standard unit cost details of which are as follows: Direct material 2 kilos x Rs4.5 per kilo Direct labour 3 ho

how does the concept of consistency aid in the analysis of financial system?

I need help with a mini accounting project. Here is a link to the questions I need answers to. Read the questions and instructions and if you think you can complete the case within

Relationship between these aspects is set out in Figure.                                 Figure: The accounting information system There are four sequential stages of an

Accounting Date In determining the accounting date of the trust, the trustees will consider the following: Date of death (accounts to anniversary of death); Fiscal y

A of surat consigns goods to B of jaipur to be sold at or above invoice price.B is entitled to get a commission of 8% on sales at invoice price plus 25% of any surplus price reali

Illustration of Pre-Aquisition H Ltd.. Acquired 80% of S Ltd. during the year ended 31/12/04.  S Ltd. paid an interim dividend of  40,000 on 30th September and as at 31/12/04 h