What is the total profit per product

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Reference no: EM131203349

Quality Data, Inc. manufactures two products, CDs and DVDs, both on the same assembly line. The predicted sales are 20,000 CD and 25,000 DVD. The predicted costs for the year 2010 are as follows: Variable Fixed Materials $400,000 $1,000,000 Other 500,000 1,600,000 Each product uses 50 percent of the materials costs. Based on manufacturing time, 60 percent of the other costs are assigned to the CD Recorders, and 40 percent of the other costs are assigned to DVD Players. The management of Quality Data desires an annual profit of $350,000. Required: a. What price should Quality Data charge for each CD if management believes the CD should sell for 50 percent more than the DVD? (Rounded to 2 decimal places) b. What is the total profit per product?

Reference no: EM131203349

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