Saki, Inc. has a standard cost card for one unit of a certain finished product s

Question

Saki, Inc. has a standard cost card for one unit of a certain finished product showing the following: If the total standard variable cost for one unit of finished product is $145, then the standard price per pound for direct materials is: $20.00 $95.00 $38.00 $58.00 Assume the following information for Chacoan Company: If fixed costs increased by 15% and management wanted to maintain the original break-even point, then the selling price per unit would have to be increased to. $221.50 $230.00 $220.50 $222.50

Explanation / Answer

Answer:- c.$38.00

Standard variable cost per unit = Standard direct materials cost per unit + Standard direct labor cost per unit + Standard variable manufacturing overhead cost per unit

$145 per unit = (2.5pounds per unit  SP) + (2.0 hours per unit  $20 per hour) + (2.0hours per unit $5 per hour)

$145 per unit = (2.5 pounds per unit  SP) + ($40 per unit) + ($10 per unit)

2.5 pounds per unit  SP = $145 per unit - $40 per unit - $10 per unit

2.5 pounds per unit  SP = $95 per unit

SP = $95 per unit  2.5pounds per unit

SP = $38 per pound

Answer:- D.$222.5

B.E.P = 180000/200-50 =1200

After increase 15% f= 207000

1200=207000/S-50

172.5 = S-50

Selling price =222.5

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.