Moon Company uses the variable cost method 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 an 18% 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 your markup percentage to one decimal place and other intermediate computations and final answer to two decimal places.

Question

Moon Company uses the variable cost method 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 an 18% 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 your markup percentage to one decimal place and other intermediate computations and final answer to two decimal places.

Quizplus · Accepted Answer

The Answer of Moon Company uses the variable cost method 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 an 18% 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 your markup percentage to one decimal place and other intermediate computations and final answer to two decimal places.

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