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sveta [45]
3 years ago
9

spectrum corp desires a 25% target gross profit after covering all product costs: considering the total product costs assigned t

o the products c and d, what would spectrum have to charge the customer to achieve that gross profit
Business
1 answer:
HACTEHA [7]3 years ago
6 0

Answer:

Note: "<em>The full question is attached as picture below"</em>

<em />

Required selling price for product = Total product cost / Product cost as a percentage of selling price

Note: <em>When the gross profit rate is 25%, this means that Product cost as a percentage of selling price is 75%</em>

Total cost assigned for product C = $1,396

Total cost assigned for product D = $3,158

<em>What would Oak have to charge the customer to achieve that gross profit?</em>

Charge to the customer for Product C:

= $1,396 / 0.75

= $1861.333333333333

= $1,861.33

Charge to the customer for Product D:

= $3,158 / 0.75

= $4210.666666666667

= $4,210.67

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hope this helps! please mark brainliest if possible:)
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aleksandrvk [35]

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Explanation:

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tresset_1 [31]

Answer:

Companies that use ABC allocate all costs including direct materials, direct labour and manufacturing overhead to the product based on an activity cost allocation rate.

This statement is False.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

Explanation:

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