Answer Happy

QUESTION 2 Cool Equipment manufactures and sells portable fridges. The company is planning to introduce its newest portable fridge model - 40FX. The average cost of producing and selling one unit of 40FX follows (based on budgeted production and sales of 10,000 units): Open with Direct materials Direct labours products. Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense There is an identical product of a comparable quality in the market that sells for RM350 per unit. Required: Each question should be treated independently. RM 150.00 92.50 20.00 27.50 6.00 4.00 DM200.000 n the i. a 10% markup on total costs. ii. a 50% markup on total variable costs. (7 marks) 2. Assume that the company uses cost-plus pricing. Calculate the unit selling price for the 40FX model if the company requires: (6 marks)