How to calculate the selling price based on this example?

S

simpleuser

Joined
Jan 5, 2011
Messages
5
Reaction score
0
Hello, the question is calculate the selling price of the following material.

Direct Material Costs: 120 000 (20 000 KG * 6 dollar a KG)
Direct Labour Costs: 300 000 (10 000 * 30 dollar an hour)
Total Indirect Costs: 30 000 dollar

The allocation base of the indirect costs allocation are the direct material costs.

Calculate the selling price if the profit margin is 25% and book is 800 gram and 10 minutes of labor.

Please show the calculations and explain, thank you!

I am doing something wrong as I could not get to the correct answer of 14,67 :(
 
You must log in or register to reply here.

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

How to calculate the average shareholder's equity? 0
USA How is a "Per Annum" Loan Calculated 4
USA Self-employed with two 401K's. How calculate contributions? 2
UK Calculate balance carried forward 1
UK How to calculate Adjustable Net Income for Child Benefit Question: 12 on Self Assessment? 1
How Trading View calculate the selling, general,admin expenses, total 0
USA How to calculate "Weighted-average common shares outstanding-Diluted" 1
USA How to calculate the market cap of a company before and after IPO 2

Top