Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 27% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Total product cost per unit Spectrum should charge Data table 2091.10 for Product C. Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print Required sales Product cost as a percentage of sales price = price per unit $ Product C 900.00 $ 400.00 226.50 1,526.50 $ Done Product D 2,400.00 100.00 531.00 3,031.00

Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 27% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Total product cost per unit Spectrum should charge Data table 2091.10 for Product C. Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print Required sales Product cost as a percentage of sales price = price per unit $ Product C 900.00 $ 400.00 226.50 1,526.50 $ Done Product D 2,400.00 100.00 531.00 3,031.00

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

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