Information for Gibbs Corporation is given in E8-7.

In E8-7

Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.

The company has a desired ROI of 20%. It has invested assets of $54,000,000. It anticipates production of 3,000 units per year.
Instructions
Using the information given in E8-7, answer the following.
(a) Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
(b) Compute the desired ROI per unit. (Round to the nearest dollar.)
(c) Computethemarkuppercentageandtargetsellingpriceusingabsorption-costpricing. (Round the markup percentage to three decimal places.)
(d) Compute the markup percentage and target selling price using variable-cost pricing. (Round the markup percentage to three decimal places.)

Transcribed Image Text:

Per Unit $380 $290 $ 72 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,500,000 $ 55 s 324,000