Question
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations expected annual volume of 500,000 units: Per Unit Total Direct
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations expected annual volume of 500,000 units:
Per Unit | Total | ||||
Direct materials | $13 | ||||
Direct labour | 6 | ||||
Variable manufacturing overhead | 14 | ||||
Fixed manufacturing overhead | $350,000 | ||||
Variable selling and administrative expenses | 6 | ||||
Fixed selling and administrative expenses | 150,000 |
The company has a desired ROI of 30%. It has invested assets of $23,700,000.
1)Calculate the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25.)
2)Calculate the desired ROI per unit. (Round answer to 2 decimal places, e.g. 15.25.)
3)Calculate the markup percentage using the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25%.)
4)Calculate the target selling price. (Round answer to 2 decimal places, e.g. 15.25.)
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