Determine the sales price assuming

Assignment Help Financial Accounting

Reference no: EM131222823

During 2014, Welch Manufacturing Company incurred $57,200,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in 2014. Manufacturing costs (direct materials, direct labor, and overhead) are expected to be $261 per unit. Packaging, shipping, and sales commissions are expected to be $59 per unit. Welch expects to sell 1,300,000 batteries before new research renders the battery design technologically obsolete. During 2014, Welch made 433,000 batteries and sold 404,000 of them.

Determine the sales price assuming that Welch desires to earn a profit margin that is equal to 25 percent of the total cost of developing, making, and distributing the batteries. (Round your answer to 2 decimal places.)

Reference no: EM131222823

Questions Cloud

Experience economies of scale that corpus christi cheer : Describe 2 ways in which you would expect a company such as Miller to experience economies of scale that Corpus Christi Cheer Beer does not.

Identify key ethical issues as they pertain to employees : Identify key ethical issues as they pertain to employees in the U.S. Examine 4-5 ethical issues that differ based on employee location (comparing matters in both Europe and Asia to those in the U.S.).

How should rsps attract develop and maintain the workforce : What one major organizational subsystem needs to be changed in RSPS? Justify your choice. How does it compare to any of the successful private, charter, or public schools in Arizona?

Best policy choice for helping : What are the advantages/disadvantages to doing so on a national level? In your opinion, is this the best policy choice for helping low wage workers? if so Why, if not what would be a better choice?

Determine the sales price assuming : During 2014, Welch Manufacturing Company incurred $57,200,000 of research and development (R&D) costs to create a long-life battery to use in computers. In accordance with FASB standards, the entire R&D cost was recognized as an expense in 2014. Dete..

Addiction for smoking cigarette and anything regarding it : The topic is, about addiction for smoking cigarette and anything regarding it. Prepare a short research paper that identifies several key issues related to the scenario you chose for your Lot in Life.

Discuss economic benefits of debt relief for these countries : There is currently a worldwide campaign to reduce the foreign debt of the least-developed countries. Discuss the economic benefits of debt relief for these countries.

Relationship between marginal and average cost : What is the relationship between marginal and average cost and what is short run and long run. Please example of short run and long run?

How changing the purpose of the writing impacts the content : The goal of this essay is to learn how changing the purpose of the writing (from informative to more argumentative) impacts the content and potential audience.

User Account

All Pages