Cueva, Cristine Jane V.

09/03/2023
STEM402

Exercise IV: Using cost-plus pricing, solve for:

a. Manufacturing cost per unit
b. Manufacturer's selling price per unit

1. Fixed cost - Php15,500

Variable cost - Php26.50
Expected unit sales - 750
% of mark-up - 15%
Answer:
a. Unit Cost = Php 26.50 + Php 15,500/750
= Php 26.50 + Php 20.67
= Php 47.17
b. Selling Price = Php 47.17 / 1 - 0.15
= Php 47.17 / 0.85
= Php 55.49

2. Fixed cost - Php38,650

Variable cost - Php33.50
Expected unit sales - 700
% of mark-up - 20%
Answer:
a. Unit Cost = Php 33.50 + Php 38,650/700
= Php 33.50 + Php 55.21
= Php 88.71
b. Selling Price = Php 88.71 / 1 - 0.20
= Php 88.71/ 0.80
= Php 110.89

3. Fixed cost - Php15,600

Variable cost - Php17.80
Expected unit sales - - 330
% of mark-up - 25%
Answer:
a. Unit Cost = Php 17.80 + Php 15,600/330
= Php 17.80 + Php 47.27
= Php 65.07
b. Selling Price = Php 65.07 / 1 - 0.25
= Php 65.07/ 0.75
= Php 86.76

4. Fixed cost - Php40,000

Variable cost - Php30.50
Expected unit sales - - 475
% of mark-up - 20%
Answer:
a. Unit Cost = Php 30.50 + Php 40,000/475
= Php 30.50 + Php 84.21
= Php 114.71
b. Selling Price = Php 114.71 / 1 - 0.20
= Php114.71 / 0.80
= Php 143.39

5. Fixed cost - Php63,700

Variable cost - Php43.00
Expected unit sales - - 500
%of mark-up - 15%
Answer:
a. Unit Cost = Php 43.00 + Php 63,700/500
= Php 43.00 + Php 127.4
= Php 170.4
b. Selling Price = Php 170.4 / 1 - 0.15
= Php 170.4 / 0.85
= Php 200.47