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ABC Company uses the total cost concept of applying the cost-plus approach to product pricing

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Question;ABC Company uses the;total cost concept of applying the cost-plus approach to product pricing. The;costs and expenses of producing and selling 38,400 units of Product G are as;follows;Variable costs;Direct materials;$ 4.70;Direct labor;2.50;Factory overhead;1.90;Selling and administrative expenses;2.60;Total;$ 11.70;Fixed costs;Factory overhead;$80,000;Selling and administrative expenses;14,000;ABC desires a profit;equal to a 14% rate of return on invested assets of $640,000.;(a);Determine the amount of desired profit from;the production and sale of Product G.;(b);Determine the total costs and the cost amount;per unit for the production and sale of 38,400 units of Product G.;(c);Determine the markup percentage for Product G.;(d);Determine the selling price of Product G.

 

Paper#43714 | Written in 18-Jul-2015

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