Handout-Pricing-Decision.pdf - Pricing Decision The...

This preview shows page 1 out of 1 page.

Pricing Decision The following data pertain to Lopez Enterprises: Variable manufacturing cost P60 Variable selling and administrative cost 20 Applied fixed manufacturing cost 40 Allocated fixed selling and administrative cost 15 1. What price will the company charge if the firm uses cost-plus pricing based on variable cost and a markup percentage of 130%? _________________ 2. What price will the company charge if the company targets a markup of 80% on variable manufacturing cost? _________________ 3. What price will the company charge if the firm uses cost-plus pricing based on absorption manufacturing cost and a markup percentage of 120%? _________________ 4. What price will the company charge if the company targets a markup of 50% on full production cost? _________________ Tomorrow Company manufactures office equipment and is ready to introduce a new line of portable copiers. The following copier data are available: Variable manufacturing cost P160 Applied fixed manufacturing cost 80 Variable selling and administrative cost 40 Allocated fixed selling and administrative cost 50 5.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture