Desalvo Corporation Is Introducing a New Product Whose Direct Materials

question 62

Essay

Desalvo Corporation is introducing a new product whose direct materials cost is $41 per unit, direct labor cost is $20 per unit, variable manufacturing overhead is $5 per unit, and variable selling and administrative expense is $4 per unit. The annual fixed manufacturing overhead associated with the product is $120,000 and its annual fixed selling and administrative expense is $8,000. Management plans to produce and sell 8,000 units of the new product annually. The new product would require an investment of $2,192,000 and has a required return on investment of 10%. Management would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing.
Required:
a. Determine the unit product cost for the new product.
b. Determine the markup percentage on absorption cost for the new product.
c. Determine the selling price for the new product using the absorption costing approach.

Calculate odds from given proportions.

Interpret software output related to logistic regression.

Understand the concept of the test statistic in the context of logistic regression.

Explain the significance of health and demographic variables on outcomes using logistic regression.

---

Definitions:

Intercompany Transfers

Transactions involving the transfer of goods, services, or funds between units, divisions, or subsidiaries within the same parent company or corporate group.

Investment Income

Income generated from the allocation of funds into interest-bearing or dividend-yielding assets.

Unallocated Positive

A term that is not widely recognized as standard in accounting or finance; it may refer to surplus income or assets not yet designated for a specific purpose but NO.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the value of the business's reputation, brand, and other unidentifiable assets.