Question
Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is shown below. Per
Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor $ 96 Variable manufacturing overhead $ 71 Fixed manufacturing overhead $ 50,000 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product.
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