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daser333 [38]
2 years ago
8

ABC Limited manufactures high quality copper pots and pans.

Business
1 answer:
Anton [14]2 years ago
8 0

Answer:

ABC Limited

The role of the management accountant in setting the price of a new product is to gather sufficient information especially cost data and competitor's prices.  The management accountant ensures that accurate computations are made to enable a proper price to be set.

Explanation:

a) Data and Calculations:

Variable Costs:

Manufacturing            $75,000

Sales Commission     $15,000

Total Variable Cost  $90,000

Fixed  Cost

Allocated Manufacturing $25,000

Total Fixed Cost             $25,000

Total Cost              $115,000

Units of production = 10,000

Unit cost = $11.50

Management decided that the required markup is 40%

Selling price = $16.10 ($11.50 * 1.4)

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