Welcome

## You are advising the management at the company ABC regarding their pricing decisions in relation to a new product.  Existing information is as follows:   Direct materials \$4 per unit; direct labor \$3 per unit; variable manufacturing overhead \$5 per unit; variable selling and administrative expenses \$2 per unit; fixed manufacturing overhead expenses \$\$40,000; and fixed selling and administrative expenses \$70,000.   There is an expectation that company will sell 20,000 units. Determine the unit product cost if company uses an absorption costing approach in its cost-plus pricing.  Determine the target selling price given that company uses a 40 percent markup percentage.  It has been brought to your attention that company is making an investment of \$100,000 in the making, marketing, and distribution of the 20,000 units of their new product.  The management require a 50 percent return on this investment.  Calculate the markup percentage on absorption costing given this information.  If the company only sells 15,000 units at \$21 per unit what would be the return on investment?  Describe a limitation of the absorption costing approach to costing.

You are advising the management at the company ABC regarding their pricing decisions in relation to a new product.  Existing information is as follows:

Direct materials \$4 per unit; direct labor \$3 per unit; variable manufacturing overhead \$5 per unit; variable selling and administrative expenses \$2 per unit; fixed manufacturing overhead expenses \$\$40,000; and fixed selling and administrative expenses \$70,000.

There is an expectation that company will sell 20,000 units.

1. Determine the unit product cost if company uses an absorption costing approach in its cost-plus pricing.
2. Determine the target selling price given that company uses a 40 percent markup percentage.
3. It has been brought to your attention that company is making an investment of \$100,000 in the making, marketing, and distribution of the 20,000 units of their new product.  The management require a 50 percent return on this investment.  Calculate the markup percentage on absorption costing given this information.
4. If the company only sells 15,000 units at \$21 per unit what would be the return on investment?
5. Describe a limitation of the absorption costing approach to costing.
Tired of numerous paper assignments?
Rely on us and receive professional paper writing assistance!

## Who We Are

We are a professional website for customized writing. If you searched a question and stumbled into our website, you are in the right place to receive assistance with your coursework.

## Do you handle any type of coursework?

Yes. We have displayed prior orders to demonstrate our experience. We can answer this question for you as we have previously. Please fill out our Order Form so that we may ensure its flawlessness. Correctly completing the order form will help our staff with reference, requirements, and future communication.

## Is it hard to Place an Order?

1. Click on the “Order Now” tab at the top menu or “GET A FREE QUOTE” icon at the bottom and a new page will appear with an order form to be filled
2. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process. Submit detailed paper instructions, upload necessary files if needed and provide your contact information – you are almost done!
3. Proceed with the payment- click on “PROCEED TO CHECKOUT” at the bottom of the page. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it. All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.