At what amount should rock hill price its supplements


Question: Rock Hill Relaxation Company sells vitamin supplements. They have collected the following budget information about the 10,000 bottles of supplements they expect to sell; Total Direct Material Cost $27,000, Total Direct Labor Cost $15,000, Total Manufacturing Overhead Cost $12,000, Total Selling and Administrative Expenses $8,000. Rock Hill's desired profit is a 50% return on investment of their $90,000 of total assets. At what amount should Rock Hill price its supplements, if they are using the Product Cost Method of pricing? a.) $13.65 b.) $10.70 c.) $5.30 d.) $15.75

 

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Accounting Basics: At what amount should rock hill price its supplements
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