Determine markup percentage for mobile phones

Assignment Help Financial Accounting

Reference no: EM13141372

Sirrus Phone Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units of mobile phones are as follows:

Variable Costs: Fixed Costs:

Direct materials 130.00 per unit Factory Overhead 175,000

Direct labor 50.00 Selling and adm. Exp. 70,000

Factory overhead 35.00

Selling and admi. Exp 25.00

Total 240.00 per unit

Sirrus desires a profit equal to a 30% rate of return on invested assets of $350,000.

1. Determine the amount of desired profit from the production and sale of mobile phones.

2. Determine the total costs and the cost amount per unit for the production and sale of 3,500 units of mobile phones.

3. Determine the markup percentage(rounded to two decimal places) for mobile phones

4. Determine the selling price of mobile phones. Round to the nearest dollar.

Reference no: EM13141372

Questions Cloud

Find margin of error to create confidence interval : A researcher wants to create a 99% confidence interval for the population mean. He has a sample of n=120, an x-bar of $340, and a sample standard deviation of $122. What is the margin of error?

Depreciation using the straight-line method : A piece of equipment purchased on January 1, 2011, for $16,000 was estimated to have a residual value of $4,000 at the end of its three-year useful life. If the equipment was depreciated using the straight-line method and disposed of on December 3..

Explain the mode of action of cholera in the human : Explain the mode of action of cholera in the human intestinal tract. What is the mode of transmission? What are "viable-but-non-culturable" bacteria, and how do they relate to cholera surveillance?

Explain half-wave rectifier : Half-Wave Rectifier, For the half-wave rectifier, the source is a sinusoid of 120 Vrms at a frequency of 60 Hz. The load resistor is 5 ohms. Determine

Determine markup percentage for mobile phones : Determine the total costs and the cost amount per unit for the production and sale of 3,500 units of mobile phones. Determine markup percentage(rounded to two decimal places) for mobile phones

Making consolidation worksheet entries : Assume that chapman company acquired abernethy's common stock for $490000 in cash. as of January 1, 2009, abernethy's land had a fair value of $90000, its buildings were valued at $160000 and its equipment was appraised at $180000. chapman uses th..

Why sexually-transmitted diseases are still a major threat : Discuss the reasons why sexually-transmitted diseases are still a major threat despite our knowledge of how to prevent and treat them?

Statement of cash flows for an upcoming shareholders meeting : You are an accountant at Evergreen, Inc and your boss (the CFO) has asked you to prepare the company's statement of cash flows for an upcoming shareholders meeting.

Find standard error of the mean for distribution of length : Suppose we select a sample of 16 cuts from various CDs sold by CRA CDs, Inc. What can we say about the shape of the distribution of the sample mean?

User Account

All Pages