Question
1. Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $20, direct labor $14, variable manufacturing overhead $8, fixed manufacturing
1. Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $20, direct labor $14, variable manufacturing overhead $8, fixed manufacturing overhead $18, variable selling and administrative expenses $4, and fixed selling and administrative expenses $13. Using a 40% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)
What is the Target selling price?
2. Jaymes Corporation produces high-performance rotors. It expects to produce 50,000 rotors in the coming year. It has invested $7,250,000 to produce rotors. The company has a required return on investment of 20%. What is its ROI per unit?
3. Rooney Small Engine Repair charges $46 per hour of labor. It has a material loading percentage of 38%. On a recent job replacing the engine of a riding lawnmower, Rooney worked 11.0 hours and used parts with a cost of $500. Calculate Rooneys total bill.
4. Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Mesa believes that it can charge $30 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $33. By using cheaper materials and gaining efficiencies in mass production, Mesa believes it can reduce Slim Slicer's cost substantially. Mesa wishes to earn a return of 30% of the selling price. (a) Compute the target cost for the Slim Slicer.
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