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Braca643 Braca643
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5 years ago
Quick Connect manufactures high-tech cell phones. Quick Connect has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:
Output units1,250phones
Machine-hours750hours
Direct manufacturing labor-hours700hours

Direct materials per unit$20
Direct manufacturing labor per hour$8
Variable manufacturing overhead costs$175,000.00
Fixed manufacturing overhead costs$126,300
Product and process design costs$143,000
Marketing and distribution costs$153,645

For long-run pricing of the cell phones, what price will most likely be used by Quick Connect?
A) $237.32
B) $402.27
C) $502.84
D) $603.41
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jingjing.wang@sjingjing.wang@s
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Posts: 181
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5 years ago
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Braca643 Author
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#2
5 years ago
Mind blown, I've bookmarked this site on told my friends
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#3
5 years ago
Really appreciate that
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