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Compute the selling price using the variable cost method

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Question - GoSnow sells snowboards. Each snowboard requires direct materials of $115, direct labor of $40, and variable overhead of $50. The company expects fixed overhead costs of $242,000 and fixed selling and administrative costs of $210,000 for the next year. The company has a target profit of $150,700. It expects to produce and sell 10,500 snowboards in the next year.

Required - Compute the selling price using the variable cost method.

Reference no: EM132534625

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