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Bolus Computer Parts Ltd. is setting a selling price on a new component it has just designed and developed. The following cost estimates for this
Bolus Computer Parts Ltd. is setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 52,500 units: Per Unit Total Direct materials Direct labour $54 26 Variable manufacturing overhead 18 Fixed manufacturing overhead $630,000 Variable selling and administrative expenses 20 Fixed selling and administrative expenses 472,500 Bolus Computer Parts' management requests that the total cost per unit be used in the cost-plus pricing of products. On this particular product, management also directs that the target price be set to provide a 25% return on investment on invested assets of $1,050,000. Calculate the markup percentage and target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component. (Round mark-up percentage to 2 decimal places, e.g. 15.25% and target selling price to O decimal places, e.g. 125.) Mark-up percentage Target selling price eTextbook and Media do % Assuming that the volume is 42,000 units, calculate the markup percentage and target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places, e.g. 15.25% or 15.25.) Mark-up percentage Target selling price +A $ %
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