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Author Question: A product cost is composed of the following: Direct materials $11Direct labor$3Manufacturing ... (Read 52 times)

melina_rosy

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Question 1

Under what conditions might a manufacturing firm sell a product for less than its long-term price? Why?

Question 2

A product cost is composed of  the following:

Direct materials  $11
Direct labor$3
Manufacturing overhead $8

The product sells for $40 and a 15% commission is paid to a salesperson for every unit sold.  Management accountants also estimate that storage cost per unit averages $0.75 per unit.  What is the full cost of the product?
◦ $14
◦ $22
◦ $28.75
◦ $28.00


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Marked as best answer by melina_rosy on Mar 6, 2021

daiying98

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melina_rosy

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Reply 2 on: Mar 6, 2021
Gracias!


aruss1303

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

 

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