Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting For Manager

Authors: Eric Noreen, Peter C. Brewer, Ray H. Garrison

6th Edition

1265118434, 9781265118433

More Books

Students also viewed these Accounting questions

Question

What is the education level of your key public?

Answered: 1 week ago

Question

What are the cultural/ethnic/religious traits of your key public?

Answered: 1 week ago