Using the total cost concept determine the cost per unit

Assignment Help Accounting Basics

Reference no: EM13479933

Display Labs Inc recently began production of a new product, flat panel displays, which required the investment of $1,800,000 in assets. The costs of producing and selling 9000 units of flat panel displays are as follows:

Variable cost per unit, direct materials $90, direct labor $20, Factory overhead $40, Selling and adminstration expenses $35 totalling $185. The fixed costs are Factory overhead $360,000, selling and administration exenses $180,000. Display Labs is currently considering establishing a selling price for flat panel displays. The president of display labs has decided to use cost-plus approach to product pricing and has indicated the displays must earn a 20% rate of return on invested assets.

1. Determine the product cost concept for cost amount per unit, markup percentages, selling price of flat panel displays.

2. Using the total cost concept determine the cost per unit, markup percentage rounded to two decimal places and selling price rounded to nearest whole dollae.

3. using variable cost concept for the cost amount per unit, the markup percentage rounded two decimal places and selling price of flat panels

4. assune that as of august 1,2012 5000 units of flat panel displays has been produced and sold during the current year.analysis of domestic market indicates that 4000 additional units are expected to b sold during the remainder of the year at normal product price determined under product cost concept.Display labs revieve an offer from Video systems for 1500 units if flat panel displays for $225 each. Video systems will market the units in canada under its own name brand and no selling and adminstative costs wer associated with thesale will be incurred by display labs. The additional business is not expected to affect the domestic sales of flatpanel displays and additional units could be produced using existing capacity.

Reference no: EM13479933

Questions Cloud

Cost of debt the zephyr corporation is contemplating a new : cost of debt the zephyr corporation is contemplating a new investment to be financed 33 percent from debt. the firm

A bicycle plant runs two assembly lines a and b 969 of line : a bicycle plant runs two assembly lines a and b. 96.9 of line arsquos products pass instruction while only 93.8 of line

The dividend is expected to grow at 8 percent indefinitely : suppose stock in watta corporation has a beta of .80. the market risk premium is 6 percent and the risk-free rate is 6

Cost of preferred stock the preferred stock of julian : cost of preferred stock the preferred stock of julian industries sells for s36 and pays 3.00 in dividends. the net

Using the total cost concept determine the cost per unit : display labs inc recently began production of a new product flat panel displays which required the investment of

The manufacturing overhead budget at foshay corporation is : 1. .which terms would make the following sentence true? manufacturing companies that benefit the most from

Belton is issuing a s1000 par value bond that pays 7 : belton is issuing a s1000 par value bond that pays 7 percent annual interest and matures in 15 years. investors are

Cost of debt belton is issuing a s1000 par value bond that : 1. cost of debt belton is issuing a s1000 par value bond that pays 7 percent annual interest and matures in 15 years.

How can the cost of preferred stock be calculated why is : on september 4 2001 alabama power co. had two issues of ordinary preferred stock that traded on the nyse. one issue

User Account

All Pages