Managerial Accounting

Auger Ambit is a manufacturing company which sets prices based on total costs plus a mark-up. For the year ending 31 December 2009 the company is forecasting total fixed costs of €788 000. Direct materials costs will be €18.00 per unit and direct labour costs will be €27.56 per unit. The company expects to produce 20 000 units, and normally looks for a profit mark up of 25%. Suggest a suitable cost-based selling price per unit of product for 2009.

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