Information for Paige Corporation is given in E22-5. Instructions Using the information given in E22-5, answer the
Question:
Information for Paige Corporation is given in E22-5.
Instructions
Using the information given in E22-5, answer the following.
(a) Compute the total cost per unit.
(b) Compute the desired ROI per unit.
(c) Using absorption-cost pricing, compute the markup percentage.
(d) Using variable-cost pricing, compute the markup percentage.
Data From E22-5:
Paige Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Paige Corporation’s anticipated annual volume of 500,000 units.
The company has a desired ROI of 25%. It has invested assets of $26,000,000.
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.
Step by Step Answer:
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso