Ask Question
27 May, 22:50

Honey Bell Corporation Eclipse Product Expected Sales 10,000 units Direct material and labor costs $ 150 per unit Variable manufacturing overhead $ 20 per unit Fixed manufacturing overhead $ 300,000 Fixed selling and administrative expenses $ 150,000 Average operating assets $ 2,000,000 Required return on investment 20 % What should be the markup percentage on the absorption costing unit cost?

+5
Answers (2)
  1. 28 May, 00:39
    0
    Answer:Am nevoie de Puncte
  2. 28 May, 02:20
    0
    20%

    Explanation:

    Absorption costings values inventory and units produced using the full cost per units.

    Total sales values = Total cost + Return on investment

    Return on investment = 20% * 2,000,000 = 400,000.

    Profit per unit = 400,000/10,000 units

    = 40 per unit

    Total production cost = Variable cost + Fixed production overhead

    = ((150 + 20) * 10,000 + (300,000)

    = 2,000,000

    Cost per unit = 2,000,000/10,000 = 200

    mark-up in (%) = profit per unit / cost per unit

    = (40/200) * 100 = 20%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Honey Bell Corporation Eclipse Product Expected Sales 10,000 units Direct material and labor costs $ 150 per unit Variable manufacturing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers