Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The cost per unit for the production of the company's product is O a $13.15 Ob. $17.22 O c. $15.75 O d. $15.40 $82,000 45,000 5.50 7.65 2.25 0.90

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...
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Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of
$800,000.
Fixed factory overhead cost
Fixed selling and administrative costs
Variable direct materials cost per unit
Variable direct labor cost per unit
Variable factory overhead cost per unit
Variable selling and administrative cost per unit
The cost per unit for the production of the company's product is
O a. $13.15
Ob. $17.22
Oc. $15.75
Od. $15.40
$82,000
45,000
5.50
7.65
2.25
0.90
Transcribed Image Text:Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The cost per unit for the production of the company's product is O a. $13.15 Ob. $17.22 Oc. $15.75 Od. $15.40 $82,000 45,000 5.50 7.65 2.25 0.90
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