Step 3: Markup Pricing
Suppose IPS uses markup pricing for Android01. Fixed costs are $4.5 million, and for a level of production of 300 units, the variable cost-per-unit is $48,000.
Question 3: What is the price of the Android01 at 30 percent markup over full cost?
Submit your Markup Pricing Report and Calculations to the dropbox below. Submit a spreadsheet showing your calculations in Excel and provide a narrative analysis in Word. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of company.
Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them in your work.
3.1 Identify numerical or mathematical information that is relevant in a problem or situation.
3.2 Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.
3.3 Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.
3.4 Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.
10.5 Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions.