Moon Company uses the variable cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: VARIABLE C

Moon Company uses the variable cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows:

VARIABLE COSTS:

DM: $7.00

DL: $3.50

FOH: $1.50

Selling and Admin exp: $3.00

Total: $15.00

Fixed Costs:

FOH: $45,000

Selling & Admin exp: $20,000

Moon desires a profit equal to a 18% rate of return on invested assets of $1,440,000.

a. Â Determine the amount of desired profit from the production and sale of Product T.

b. Â Determine the total variable costs for the production and sale of 75,000 units of Product T.

$

c. Â Determine the markup percentage for Product T. Round your answer to one decimal place.

Â

d. Â Determine the unit selling price of Product T. Round your answer to two decimal places.

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