Business, 07.08.2021 01:00 browneyedbaby20
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 31,000 units follow. The company targets a profit of $311,000 on this product. Variable Costs per Unit Direct materials 81 Overhead Direct labor Overhead Selling Fixed Costs 51 Selling 36 Administrative 26 $681,000 316,000 296,000
1. Compute the variable cost per unit.
2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.)
3. Compute the product's selling price using the variable cost methoo. Answer is complete but not entirely correct.
1. Variable cost per unit S 6,014,000
2. Markup percentage 5.17 %
3. Selling price S 246
Answers: 1
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Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for p...
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