Use cost-plus pricing to determine various amounts.E9.20 (LO 2) Excel Ahmed Corporation makes a mechanical stuffed alligator. The following informationis available for Ahmed Corporation's expected annual volume of 500,000 units:Per UnitDirect materialsDirect labourVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expensesFixed selling and administrative expensesThe company has a desired ROI of 25%. It has invested assets of $24 million.Instructionsa. Calculate the total cost per unit.b. Calculate the desired ROI per unit.c. Calculate the markup percentage using the total cost per unit.d. Calculate the target selling price.$178114Total$360,000150,000

Requirement:-a Calculation of Total cost per unit as follows:- Total cost per unit =All variable…

Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested assets of $24 million. Instructions a. Calculate the total cost per unit. b. Calculate the desired ROI per unit. c. Calculate the markup percentage using the total cost per unit. 150

Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested assets of $24 million. Instructions a. Calculate the total cost per unit. b. Calculate the desired ROI per unit. c. Calculate the markup percentage using the total cost per unit. 150

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 29BEB: Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in...

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Question

Use cost-plus pricing to determine various amounts.
E9.20 (LO 2) Excel Ahmed Corporation makes a mechanical stuffed alligator. The following information
is available for Ahmed Corporation's expected annual volume of 500,000 units:
Per Unit
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
The company has a desired ROI of 25%. It has invested assets of $24 million.
Instructions
a. Calculate the total cost per unit.
b. Calculate the desired ROI per unit.
c. Calculate the markup percentage using the total cost per unit.
d. Calculate the target selling price.
$17
8
11
4
Total
$360,000
150,000

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