Business, 03.12.2019 05:31, tareas7009

Crystal displays inc. recently began production of a new product, flat panel displays, which required the investment of $1,300,000 in assets. the costs of producing and selling 5,000 units of flat panel displays are estimated as follows: 1 variable costs per unit: 2 direct materials $122.00 3 direct labor 29.00 4 factory overhead 48.00 5 selling and administrative expenses 37.00 6 total $236.00 7 fixed costs: 8 factory overhead $252,000.00 9 selling and administrative expenses 148,000.00 crystal displays inc. is currently considering establishing a selling price for flat panel displays. the president of crystal displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 13% rate of return on invested assets.

required:
1. determine the amount of desired profit from the production and sale of flat panel displays.
2. assuming that the product cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays.
3. (appendix) assuming that the total cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays.
4. (appendix) assuming that the variable cost concept is used, determine (a) the cost amount per unit, (b) the markup percentage (rounded to two decimal places), and (c) the selling price of flat panel displays.

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Crystal displays inc. recently began production of a new product, flat panel displays, which require...