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Author Question: Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 20% markup ... (Read 101 times)

dakota nelson

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Quick Connect manufactures high-tech cell phones. Quick Connect 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 units1600phones
Machine-hours650hours
Direct manufacturing labor-hours1000hours
 
Direct materials per unit$20 
Direct manufacturing labor per hour$6.40 
Variable manufacturing overhead costs$14,000 
Fixed manufacturing overhead costs$48,000 
Product and process design costs$32,000 
Marketing and distribution costs$65,600 

For long-run pricing of the cell phones, what price will most likely be used by Quick Connect?
◦ $32.75
◦ $91.00
◦ $123.75
◦ $148.50


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Marked as best answer by dakota nelson on Mar 6, 2021

bulacsom

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dakota nelson

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


carlsona147

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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