Solution-What wagner should charge a selling price of

What wagner should charge a selling price of

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Reference no: EM132738917

Wagner sells product A at a price of P21 per unit. Wagner's cost per unit based on the full capacity of 200,000 units is as follows:

Direct materials P 4

Direct labor 5

Overhead (2/3 of which is fixed) 6

TOTAL P15

A special order offering to buy 20,000 units was received from foreign distributor. The only selling costs that would be incurred on this order would be P3 per unit for shipping. Wagner has sufficient existing capacity to manufacture the additional units

Problem 1: To achieve an increase in operating income of P40,000. Wagner should charge a selling price of

A. P14 C. P16

B. P15 D. P18

Reference no: EM132738917

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What wagner should charge a selling price of

Reference no: EM132738917

Reference no: EM132738917

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