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E8-4 Kaspar Corporation makes a commercial-grade

Price: $1.99


Kaspar Corporation makes a commercial-grade cooking griddle. The following
information is available for Kaspar Corporation’s anticipated annual volume of 30,000
units.


  Per Unit Total
Direct materials  17
Direct labor  8
Variable manufacturing overhead  11
Fixed manufacturing overhead  300,000
Variable selling and administrative expenses  4
Fixed selling and administrative expenses  150,000

Instructions
(a) Compute the total cost per unit.
(b) Compute the target selling price.

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