Breaky company is launching a new cleaning product for

Reference no: EM13600030

Breaky Company is launching a new cleaning product for ceramic vases. The company invests $2,900,000 in operating assets, such as production equipment, and plans to produce and sell 150,000 units per year. Breaky wants to make a return on investment of 35% each year. Breaky needs to know what price to charge for this product. Use the absorption costing approach to determine the markup necessary to make the desired return on investment. Round your answer to three decimals. Cost information is below:

Direct Materials $15.00 (per unit)
Direct Labor $9.50 (per unit)
Variable manufacturing overhead $3.00 (per unit)
Fixed manufacturing overhead $300,000 (total)
Variable selling and admin. expense $0.70 (per unit)
Fixed selling and admin. expense $80,000 (total)

Reference no: EM13600030

Questions Cloud

The laramie factory produces expensive boots it has two : the laramie factory produces expensive boots. it has two departments that process all the items. during january the

Preparing pro forma income statements with different : preparing pro forma income statements with different assumptions.top executive officers of leach company a

Cowley county hospital uses a job-costing system for all : cowley county hospital uses a job-costing system for all patients who have surgery. in march the pre-operating room

What is cost of goods sold for 2012 d what amount of : hammer inc. had the following activities during 2012 direct materials beginning

Breaky company is launching a new cleaning product for : breaky company is launching a new cleaning product for ceramic vases. the company invests 2900000 in operating assets

Jacobs company manufactures refrigerators the company uses : jacobs company manufactures refrigerators. the company uses a budgeted indirect-cost rate for its manufacturing

On december 5 the store received 500 from the jackson : liability entries and adjustments listed below are selected transactions of schultz department store for the current

Isabelle inc uses a budgeted factory overhead rate to apply : isabelle inc. uses a budgeted factory overhead rate to apply overhead to production. the following data are available

Holiday company issued its 9 25-year mortgage bonds in the : holiday company issued its 9 25-year mortgage bonds in the principal amount of 3000000 on january 2 1996 at a discount

User Account

All Pages