Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 8, Problem 8.5E
Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation’s anticipated annual volume of 500,000 units.
Per Unit | Total | |
Direct materials | $ 7 | |
Direct labor | $11 | |
Variable manufacturing |
$15 | |
Fixed manufacturing overhead | $3,000,000 | |
Variable selling and administrative expenses | $14 | |
Fixed selling and administrative expenses | $1,500,000 |
The company has a desired
Instructions
(a) Compute the total cost per unit.
(b) Compute the desired ROI per unit.
(c) Compute the markup percentage using total cost per unit.
(d) Compute the target selling price.
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Managerial Accounting: Tools for Business Decision Making
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