Respuesta :
Answer:
1. Variable cost per unit = $150
2. Markup percentage = 34.89%
3. Selling price = $202.33
Explanation:
Variable cost per unit = 70+40+25+15= $150
Fixed cost = 670,000+ 305,000 +285,000= $1,260,000
Fixed cost per unit = 1,260,000/30,000= $42
Profit per unit = Targeted profit
Targeted production unit
= $310,000 =$10.33
30,000
Markup percenge = Fixed cost per unit + profit per unit
Variable cost per unit
=$42+ $10.33 = 52.33 * 100 = 34.89%
$150 $150 1
Selling Price = Variable cost per unit + markup
= $150+$42+$10.33
= $202.33
Variable cost-plus pricing is calculated by determining variable costs per unit and adding mark-up which will cover fixed costs per unit and generate a targeted profit margin.
Answer: The variable cost per unit is 150, The mark up percentage on variable cost is 5%, The selling price is $192
Explanation:
To calculate variable cost per unit
= (40 + 25 + 15 + 70)
= 150
To calculate fixed cost per unit
(670,000 + 305,000 + 285,000)
=1,260,000
Fixed cost per unit
= Total Fixed cost ÷ Total unit produced
= 1,260,000 ÷ 30,000
= 42
To compute the total variable cost
=Total Variable cost = Total quantity of output × variable cost per unit of output
= 30,000 × 150
= 4,500,000
Total Cost
= TFC + TVC
= 1,260, 000 + 4,500,000
= 5,760,000
To compute the mark up percentage on variable cost
= profit/ cost price ×100
= 310,000/ 5,760,000 × 100
= 0.05 × 100
= 5%
To compute the product selling price using the variable cost method
= variable cost per unit + Fixed cost per unit
= 150 + 42
= 192
Therefore the selling price is $192 in order to cover the fixed cost.
