Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 29 Jul 2017 My Price 10.00

Price Determination

E3A Price Determination. Soft industries has just patented a new lotion with lasting sun protection. The company's controller has developed the following annual information for use in price determination meetings:

Variable production costs $450,000

Fixed Overhead costs $250,000

Selling Expenses $100,000

General and Administrative Expenses $75,000

Desired Profit $315,000

Costs of Assets employed $1,000,000

 

Annual demand for the Product is expected to be 500,000 tubes. On average, the company now earns an 8 percent return on assets.

 

1. Compute the projected unit cost for one tube of lotion

2. Using gross margin pricing, compute the markup percentage and selling price for one tube.

3. Using return on assets pricing, compute the unit price for one tube of lotion

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 11:07 PM My Price 10.00

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