Falcon Inc

question 72

Essay

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.​

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Definitions:

Financial Theory

The study of economics that examines ways to manage and allocate financial resources, analyzing financial systems and markets.

Economics

The discipline within social science that examines the decision-making process of individuals, governments, companies, and countries in distributing resources to fulfill their desires and requirements.

S Corporations

A special tax status granted to certain corporations, allowing income to be passed through to shareholders and taxed at individual rates.

Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business.