Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. aldean company wants to use absorption cost-plus p

Aldean Company wants to use absorption cost-plus pricing to set the selling price on a...

90.2K

Verified Solution

Question

Accounting

image

Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product. The company plans to invest $120,000 in operating assets to produce and sell 12,000 units. Its required return on investment (ROI) in its operating assets is 18% The accounting department has provided cost estimates for the new product as shown below Per Unit $7.30 $5.30 $2.30 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 88,800 $1.30 69,840 Required: 1. What is the unit product cost for the new product? (Round intermediate calculations and final answer to 2 decimal places.) 2. What is the markup percentage on absorption cost for the new product? (Round intermediate calculations to 2 decimal places.) 3. What selling price would the company establish for its new product using a markup percentage on absorption cost? (Round intermediate calculations and final answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

If the number of Lego bricks were averaged out among the world’s population, each person would...

General Management
Q

Formulating problem solutions to identify possible consumer complaints or issues with new products, do you think...

General Management
Q

what is the below formula what is the diffrent between them How I can use...

Physics
Q

Brent Pickett borrowed $5000 from his brother Dave. He agreed to repay the money at...

Basic Math
Q

In a recent survey of college-educated adults, 102 indicated that they regularly work more than...

Basic Math
Q

Refer to the accompanying data set of 20 randomly selected presidents Treat the data as...

Statistics
Q

Use the data in the following table, which lists drive-thru order accuracy at popular fast...

Statistics
Q

Correct the following statement.log2 8 = 4Use fx to type math equations.

Calculus
Q

Sales on account for the first two months of the current year are budgeted as...

Accounting
Q

Paste B I UB a. Av L18 X & fx A B ...

Accounting
Q

Sales Variances Presented is information pertaining to an item sold by Wheeping Creek General Store:...

Accounting
Q

3. Which of the following is NOT a factor used to determine credit score? (a)...

Finance