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Answer the following questions using the information below: Schlickau Company manufactures basketball backboards. The following information pertains to the company's normal operations per month: Output

  1. Answer the following questions using the information below:
  2. Schlickau Company manufactures basketball backboards. The following information pertains to the company's normal operations per month:
  3. Output units15,000 boardsDirect manufacturing labor-hours5,000 hoursMachine-hours4,000 hoursDirect materialsper unit$100Direct manufacturing laborper hour$12Variable manufacturing overhead costs$150,000Fixed manufacturing overhead costs$300,000Research and Development costs (all fixed)$150,000Marketing and distribution costs (50% fixed)$300,000

  1. If the invested capital ofSchlickau Company is $9,000,000 and the targetannual rate of return on investment is 50%, what is the target mark-up per unit?

  1. And whatis the target mark-up rate based on the manufacturing-cost in long-run pricing?

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