Concept explainers
Requirement 1:
Determine the
Requirement 2:
Compute the total cost per unit for both products if the direct materials and direct labor cost is $25 per pup tent and $32 per pop-up tent.
Requirement 3:
Compute the gross profit per unit for each tent if the market price of pup tent is $65 and $200 for pop-tent and determine what might management conclude about the pup tent?
Requirement 4:
Compute the total cost per unit of each tent if the direct labor and direct materials cost is $25 per pup tent and $32 per pop-up tent using ABC.
Requirement 5
Using ABC results, determine the gross profit per unit of each tent if the market price is $65 per pup tent and $200 per pop-up tent and suggest whether each product line would be profitable or not.
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