Answer and Explanation

Exercise 9.20 a-d Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units: Per Unit Total Direct materials $17 Direct labour 6 Variable manufacturing overhead 10 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 40%. It has invested assets of $25,000,000. Calculate the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) Total cost per unit $ Calculate the desired ROI per unit. (Round answer to 2 decimal places, e.g. 15.25.) Desired ROI per unit $Calculate the markup percentage using the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25%.) Markup percentage per unit % Calculate the target selling price. (Round answer to 2 decimal places, e.g. 15.25.) Target selling price $