Download Chapter 12 -Pricing Decisions and Cost Management PDF

TitleChapter 12 -Pricing Decisions and Cost Management
Tags Prices Long Run And Short Run Supply (Economics) Demand
File Size693.6 KB
Total Pages43
Document Text Contents
Page 21

Costing and Pricing
for the Long Run – Example

Direct material and labor $51,650,000

Direct fixed costs 7,000,000

Ordering (17,000 × $78) 1,326,000

Testing (3,000,000 × $2) 6,000,000

Rework (8,000 × $38) 304,000

Total $66,280,000

$66,280,000 ÷ 100,000 units = $662.80/unit

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