Moon Company Uses the Variable Cost Concept of Applying the Cost-Plus

question 145

Essay

Moon Company uses the variable cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows:​ Moon desires a profit equal to an18% rate of return on invested assets of $1,440,000.
(a)Determine the amount of desired profit from the production and sale of Product T.
(b)Determine the total variable costs for the production and sale of 75,000 units of Product T.
(c)Determine the markup percentage for Product T.
(d)Determine the unit selling price of Product T.Round the markup percentage to one decimal place and other intermediate calculations and final answer to two decimal places.

---

Definitions:

Exciting Basketball Game

Describes a basketball match characterized by intense, thrilling moments, often with close scores and unpredictable outcomes.

Snack Food

A type of food that is typically eaten between meals, often convenience foods that are prepackaged and portable.

Baseline Data

Initial data collected at the beginning of a study or project, serving as a point of comparison for future data collected.

Initial Response Level

The initial reaction or behavior of an individual when first confronted with a stimulus or situation, before any conscious processing occurs.