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Author Question: Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding ... (Read 298 times)

asan beg

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Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:

Output units30,000tables
Machine-hours6000hours
Direct manufacturing labor-hours10,000hours
Direct materials per unit$50 
Direct manufacturing labor per hour$12.00 
Variable manufacturing overhead costs$322,500 
Fixed manufacturing overhead costs$1,200,000 
Product and process design costs$600,000 
Marketing and distribution costs$1,290,000 

For long-run pricing of the coffee tables, what price will most likely be used by Grounded Coffee?
◦ $64.75
◦ $103.00
◦ $167.75
◦ $201.30


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Marked as best answer by asan beg on Mar 6, 2021

manuelcastillo

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asan beg

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


kusterl

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Reply 3 on: Yesterday
Excellent

 

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