Reference no: EM132510594
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 113,500.
Variable costs per unit:
Direct materials$11.55
Direct labour12.55
Variable manufacturing overhead8.60
Variable selling and administrative expenses5.30
Annual fixed costs and expenses:
Manufacturing overhead$368,875
Selling and administrative expenses per unit2.00
- Yaltz Inc. will invest $1,013,000 for this new launch and would like to earn a $19.83 per unit return on its investment.
Question a) Calculate the total cost per unit using variable costing. (Round answer to 2 decimal places, e.g. 15.25.)
Question b) Calculate the markup percentage on the total variable cost per unit. (Round answer to 2 decimal places, e.g. 15.25%.)
Question c) Calculate the target price per unit. (Round answer to 2 decimal places, e.g. 15.25.)
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