Business, 26.08.2021 19:30 marvezunderwood

Jay Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows: Variable costs:
Direct materials $4.70
Direct labor 2.50
Factory overhead 1.90
Selling and administrative expenses 2.60
Total $11.70

Fixed costs:
Factory overhead $80,000
Selling and administrative expenses 14,000

Jay desires a profit equal to a 14% rate of return on invested assets of $640,000.

a. Determine the amount of desired profit from the production and sale of Product E: $
b. Determine the total costs and the cost amount per unit for the production and sale of 38,400 units of Product E: Cost amount per unit: Round to two decimal places. Total costs: $ $
c. Determine the markup percentage for Product E: Round to one decimal place.%
d. Determine the selling price of Product E: Round to two decimal places. $

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 02:50, dreyes439

Grey company holds an overdue note receivable of $800,000 plus recorded accrued interest of $64,000. the effective interest rate is 8%. as the result of a court-imposed settlement on december 31, year 3, grey agreed to the following restructuring arrangement: reduced the principal obligation to $600,000.forgave the $64,000 accrued interest. extended the maturity date to december 31, year 5.annual interest of $40,000 is to be paid to grey on december 31, year 4 and year 5. the present value of the interest and principal payments to be received by grey company discounted for two years at 8% is $585,734. grey does not elect the fair value option for reporting the debt modification. on december 31, year 3, grey would recognize a valuation allowance for impaired loans of

Answers: 3

continue

Business, 22.06.2019 11:10, takaralocklear

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Answers: 2

continue

Business, 22.06.2019 11:20, leshayellis1591

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Answers: 1

continue

Business, 22.06.2019 18:00, theflash077

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less

Answers: 1

continue

You know the right answer?

Jay Company uses the total cost concept of applying the cost-plus approach to product pricing. The c...