Lego Kit Home Field Advantage Selling Price Breakdown 530450

Question

Lego Kit Home Field Advantageselling Price Breakdownselling Price Lego Kit: “Home Field Advantage” · Selling Price Breakdown: Selling Price: $8.35 Price to Build: ( $5.22) Profit Margin: $3.13 · The selling price of “Home Field Advantage” is based on a profit margin of 60% which contributes to the selling and administrative expenses of the company. The price to build the Lego Kit is calculated by summing direct materials, direct labor, and applied overhead. This Lego kit is inexpensive to produce due to the absence of specialty pieces, allowing for a higher profit margin at a low price. It is a straightforward kit, yet appealing to children who watch college football and want to build their own stadium. · Production Process: Send completed bricks to packaging, complete bricks and send to painting, paint bricks using different colors, put brick material into production, send completed “Home Field Advantage” kit to be sold, package bricks into helmet-shaped boxes and check for defects. · Production Cost: Direct Materials, Direct Labor, Overhead Costs (cost of raw materials, labor, depreciation, packaging, utilities, paint, checking, indirect materials). · Direct Material Breakdown: List of bricks by size, color, quantity used, cost per unit, total cost, totaling $3.12. · Total Cost of Goods Manufactured and Selling Price Breakdown: Material Cost: $3.12, Labor Cost: 50% of material cost ($1.56), Overhead Cost: 35% of labor cost ($0.54), Total Cost: $5.22, Plus Markup of 60% ($3.13), Total Selling Price: $8.35. · In Progress and Final Product: Details about the process and quality checks are included in manufacturing steps, ensuring product standards are maintained.

Dr. Jack HW Helper · Accepted Answer

Lego Kit Home Field Advantageselling Price Breakdownselling Price Lego Kit: “Home Field Advantage” · Selling Price Breakdown: Selling Price: $8.35 Price to Build: ( $5.22) Profit Margin: $3.13 · The selling price of “Home Field Advantage” is based on a profit margin of 60% which contributes to the selling and administrative expenses of the company. The price to build the Lego Kit is calculated by summing direct materials, direct labor, and applied overhead. This Lego kit is inexpensive to produce due to the absence of specialty pieces, allowing for a higher profit margin at a low price. It is a straightforward kit, yet appealing to children who watch college football and want to build their own stadium. · Production Process: Send completed bricks to packaging, complete bricks and send to painting, paint bricks using different colors, put brick material into production, send completed “Home Field Advantage” kit to be sold, package bricks into helmet-shaped boxes and check for defects. · Production Cost: Direct Materials, Direct Labor, Overhead Costs (cost of raw materials, labor, depreciation, packaging, utilities, paint, checking, indirect materials). · Direct Material Breakdown: List of bricks by size, color, quantity used, cost per unit, total cost, totaling $3.12. · Total Cost of Goods Manufactured and Selling Price Breakdown: Material Cost: $3.12, Labor Cost: 50% of material cost ($1.56), Overhead Cost: 35% of labor cost ($0.54), Total Cost: $5.22, Plus Markup of 60% ($3.13), Total Selling Price: $8.35. · In Progress and Final Product: Details about the process and quality checks are included in manufacturing steps, ensuring product standards are maintained.

Lego Kit Home Field Advantageselling Price Breakdownselling Price

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