Questions -
Q1. Goshawks Co. produces an automotive product and incurs total manufacturing costs of $2,600,000 in the production of 80,000 units. The company desires to earn a profit equal to a 12% rate of return on assets of $960,000. Total selling and administrative expenses are $105,000.
a) Compute a markup percentage using the product cost concept.
b) Calculate a selling price per unit of the automotive product.
Q2. Goshawks Co. produces an automotive product and incurs total manufacturing costs of $2,600,000 in the production of 80,000 units. The company desires to earn a profit equal to a 12% rate of return on assets of $960,000. Total selling and administrative expenses are $105,000.
a) Compute a markup percentage using the product cost concept.
b) Determine a selling price per unit of the automotive product.