Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 96 Variable manufacturing overhead 71 Fixed manufacturing overhead s s0,00 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. la) Compute the markup percentage untler variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, es. 10.50%.) Markup Percentage Save for Later Attempts: 0 of 1 used Submit Answer

Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 96 Variable manufacturing overhead 71 Fixed manufacturing overhead s s0,00 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. la) Compute the markup percentage untler variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, es. 10.50%.) Markup Percentage Save for Later Attempts: 0 of 1 used Submit Answer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

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