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Rollie Company is launching a new cleaning product for ceramic vases. The company invests $1,200,000 in operating assets, such as production equipment,and plans to produce and sell 400,000 units per year. Rollie wants to make a return on investment of 20% each year. Rollie 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.
Per Unit TotalDirect Materials $2.00Direct Labor $1.50Variable Manufacturing Overhead $1.00Fixed Manufacturing Overhead $200,000Variable Selling andAdministrative Expense $0.10Fixed Selling and Administrative Expense $50,000
Emu Company, which was formed in 2010, had operating income of $200,000 and operating expenses of $120,000 in 2010. In addition, Emu had a long-term capital loss of $10,000.
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Use the checklist to outline phases of the internal control evaluation. You may use the (1) components of internal control, or (2) relevant assertions as headers within your checklist.
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If the selling prices of finished products Y and Z remain constant, the percentage of the total joint costs allocated to product Y and product Z would
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