Wesley Company makes bowling balls and uses the total cost method in setting product prices. Its costs for producing 10,000 bowling balls follow. The company targets a 12.5% markup on total cost. The dollar markup per unit is:

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The dollar markup per unit is $18.25 per unit

Total cost per unit = Direct materials per unit + Direct labor per unit + Variable overhead per unit + Variable selling general and administrative per unit + Fixed overhead per unit + Fixed selling general and administrative overhead per unit

Total cost per unit = $63 + $13.8 + $23 + $3.8 + ($222000/10000) + ($202000/10000)

Total cost per unit = $63 + $13.80 + $23 + $3.80 + $22.2 + $20.2

Total cost per unit = $146 per unit

Dollar markup per unit = Total cost per unit × Markup% on total cost

Dollar markup per unit = $146 * 12.5%

Dollar markup per unit = $18.25 per unit

Therefore, the dollar markup per unit is $18.25 per unit

Missing options are "Direct materials $63 Overhead $222,000  Direct labor $13.80 Selling, general, and administrative $202,000  Overhead $23.00 Selling, general, and administrative $3.80"

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