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Q.19-9SE

Expert-verified
Found in: Page 1066

### Horngren'S Financial And Managerial Accounting

Book edition 6th
Author(s) Tracie L. Miller-Nobles, Brenda L. Mattison
Pages 992 pages
ISBN 9780134486833

# Refer to Short Exercise S19-8. Spectrum Corp. desires a 25% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D in Short Exercise S19-8, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places.

Price for Product C: $400.53 Price for product D:$805.33

See the step by step solution

Per unit cost for product C = $300.4 As the target gross profit is 25% So, the present cost should be 75% of the sales price. ## Price for Product D Per unit cost for product D =$604

As the target gross profit is 25%

So, the present cost should be 75% of the sales price.

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