Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. what is the target selling price under absorption

What is the target selling price under absorption cost pricing? (not variable) a. $127.50 b....

70.2K

Verified Solution

Question

Accounting

What is the target selling price under absorption cost pricing? (not variable)
a. $127.50
b. $135.50
c. $140.25
d. $145.95 image
*P22-7A Stent Corporation needs to set a target price for its newly designed product EverReady. The following data relate to this new product. Per Unit Total Direct materials $20 Direct labor $40 Variable manufacturing overhead $10 Fixed manufacturing overhead $1,600,000 Variable selling and administrative expenses $ 5 Fixed selling and administrative expenses $1,120,000 The costs shown above are based on a budgeted volume of 80,000 units produced and sold each year. Stent uses cost-plus pricing methods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the account ing department provides information under both approaches using a markup of 50% on absorption cost and a markup of 80% on variable cost

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

Assume a corporation is expecting the following cash flows in the future: $-5 million in year...

Finance
Q

Sigall and Ostrove (1975) did an experiment to assess whether the physical attractiveness of a defendant on...

Basic Math
Q

Why might the relationship between Disturbance and Species Composition be MORE IMPORTANT than Species Richness to...

Biology
Q

A diploid organism produces four gametes from one parent cell through the process of meiosis. Two...

Biology
Q

1. What will be some of the potential issues faced by a business looking to implement...

General Management
Q

Question 1 5 pts Cystic fibrosis is a Mendelian recessive allele The most common mutation...

Biology
Q

7 You slide a 0 12 kg coffee mug 0 15 m across a table...

Physics
Q

Complete the problem Check your answer in the back of the book 3 Nayan Patel...

Algebra
Q

Gandalf Manufacturing Company produced 38,000 units of product in 2014, using 285,000 units of direct...

Accounting
Q

What is big data? How can big data analytics help a company grow? Explain...

Accounting
Q

Exercise 12-4 Evaluating a Special Order [LO12-4] Imperial Jewelers is considering a special order for...

Accounting
Q

Breakeven analysis of Green Lodge (50 Marks) Green Lodge...

Accounting