Falcon Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Falcon desires a profit equal to a 12% return on invested assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold.
a.Compute the markup percentage, using the total cost method of applying the cost-plus approach to product pricing.
b.Compute the selling price of Product B.Round your intermediate computations and final answer to two decimal places.

Question

Falcon Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Falcon desires a profit equal to a 12% return on invested assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold.
a.Compute the markup percentage, using the total cost method of applying the cost-plus approach to product pricing.
b.Compute the selling price of Product B.Round your intermediate computations and final answer to two decimal places.​

Quizplus · Accepted Answer

The Answer of Falcon Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Falcon desires a profit equal to a 12% return on invested assets, $785,000 of assets are devoted to producing Product B, and 100,000 units are expected to be produced and sold.
a.Compute the markup percentage, using the total cost method of applying the cost-plus approach to product pricing.
b.Compute the selling price of Product B.Round your intermediate computations and final answer to two decimal places.​