Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the...
Dotterel Corporation uses the variable cost concept of product
pricing. Below is cost information for the production and sale of
35,000 units of its sole product. Dotterel desires a profit equal
to an 11.2% rate of return on invested assets of
$350,000.
| Fixed factory overhead cost | $105,000 |
| Fixed selling and administrative costs | 35,000 |
| Variable direct materials cost per unit | 4.34 |
| Variable direct labor cost per unit | 5.18 |
| Variable factory overhead cost per unit | 0.98 |
| Variable selling and administrative cost per unit | 0.70 |
The dollar amount of desired profit from the production and sale of
the company's product is
a.$89,600
b.$70,000
c.$39,200
d.$84,000
Homework Answers
Dollar amount of desired profit = Investment*Desired profit rate
= 350000*11.20%
Dollar amount of desired profit = 39200
So answer is c) $39200
Add Answer to:
Dotterel Corporation uses the variable cost concept of product
pricing. Below is cost information for the...
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for...
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 61,500 units of its sole product. Magpie desires a profit equal to a 24% rate of return on invested assets of $583,000. Fixed factory overhead cost $36,600 Fixed selling and administrative costs 7,800 Variable direct materials cost per unit 4.33 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost...
Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the...
Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per...
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production...
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 61,000 units of its sole product. Magpie desires a profit equal to a 18% rate of return on invested assets of $628,000. Fixed factory overhead cost $39,700 Fixed selling and administrative costs 7,200 Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit...
18: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for...
18: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost...
Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale...
Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. Fixed factory overhead cost $38,700 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.60 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost...
31. Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production...
31. Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 56,300 units of its sole product. Magpie desires a profit equal to a 21% rate of return on invested assets of $643,000. Fixed factory overhead cost $36,000 Fixed selling and administrative costs 7,900 Variable direct materials cost per unit 5.06 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative...
Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 140,000 Direct labor 25 Selling and admin. exp. Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the variable costs...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $94 Factory overhead $160,000 Selling and admin. exp. Direct labor 34 55,000 Factory overhead 29 Selling and admin. exp. $180 Total Willis Products desires a profit equal to a 20% rate of return on invested assets...
1. Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing....
1. Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The cost and expenses of producing and selling 50,000 units of Product K are as follows: Variable costs: Direct materials $5.00 Direct labor 8.50 Factory overhead 2.50 Selling and administrative expenses 1.00 Total $17.00 Fixed costs: Factory overhead $50,000 Selling and administrative expenses 34,000 2. Tidewater desires a profit equal to a 10% rate of return on invested assets of $1,285,000. a. Determine the...
25 Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product...
25 Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the variable costs...
Magpie Corporation uses the total cost concept of product pricing. Below is the cost information for the production and sale of 61,000 units of its sole product. Magpie desires a profit equal to a 18% rate of return on invested assets of $628,000. Fixed factory overhead cost $39,700 Fixed selling and administrative costs 7,200 Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit...
Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 140,000 Direct labor 25 Selling and admin. exp. Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the variable costs...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $94 Factory overhead $160,000 Selling and admin. exp. Direct labor 34 55,000 Factory overhead 29 Selling and admin. exp. $180 Total Willis Products desires a profit equal to a 20% rate of return on invested assets...
25 Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor Selling and admin. exp. 140,000 Factory overhead 40 Selling and administrative expenses 25 Total $240 Smart Stream desires a profit equal to a 30% rate of return on invested assets of $1,200,000. a. Determine the variable costs...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago