Vaughn Corporation Needs To Set A Target Price For Its Newly Designed Product M14 M16 The Following Data Relate To This 1 (74.45 KiB) Viewed 10 times
Vaughn Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $24 $39 $13 $4 Total $1,520,000 $ 880,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year. Vaughn uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 50%.
Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14-M16s are produced and sold during the year. Variable cost per unit Fixed cost per unit Total cost per unit $ $
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