Solution-Compute the dollar markup per unit on variable cost

Compute the dollar markup per unit on variable cost

Reference no: EM133159610

Question - Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 35,000 units follow. The company targets a profit of $315,000 on this product.

Variable Costs per Unit

Direct materials $85

Direct labor 55

Overhead 40

Selling, general and administrative 30

Fixed Costs (total) Overhead $685,000

Selling, general and administrative 620,000

Required -

1. Compute the total variable cost and the markup percentage.

2. Compute the dollar markup per unit on variable cost.

3. Compute the selling price per unit.

Reference no: EM133159610

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Compute the dollar markup per unit on variable cost

Reference no: EM133159610

Reference no: EM133159610

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