Night Glow Inc. recently began production of a new product, the halogen light, which required the investment of $600,000 in assets. The costs of producing and selling 10,000 halogen lights are estimated as follows: Night Glow Inc. is currently considering establishing a selling price for the halogen light. The president of Night Glow Inc. has decided to use the cost-plus approach to product pricing and has indicated that the halogen light must earn a 10% rate of return on invested assets. Note: Round all markup percentages to two decimal places, if required. 1. Determine the amount of desired profit from the production and sale of the halogen light. $ 2. Assuming that the product cost concept is used, determine the following: The cost amount per unit. The markup percentage. The selling price of the halogen light. a. Cost amount per unit $ b. Markup percentage % c. Selling price per unit $ 3. Appendix Assuming that the total cost concept is used, determine the following: The cost amount per unit. The markup percentage. The selling price of the halogen light (rounded to nearest whole dollar). a. Cost amount per unit $ b. Markup percentage % c. Selling price per unit $ 4. Appendix Assuming that the variable cost concept is used, determine the following: The cost amount per unit. The markup percentage. The selling price of the halogen light (rounded to nearest whole dollar). a. Variable cost amount per unit $ b. Markup percentage %c. Selling price per unit$
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