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Bramble Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at
Bramble Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 5,120 units are as follows. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $ 100 $ 80 $ 10 $ 10 Total $ 153,600 $ 130,560 Bramble Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window line. A total of $1,300,480 in assets is committed to production of the new tinted window.
A. Compute the markup percentage under absorption-cost pricing that will allow Bramble Windows to realize its deaired ROI.
Bramble Windows Inc is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 5.120 units are as follows. Bramble Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI onits tinted window line A total of $1,300,480 in assets is committed to production of the new tinted window B. Compute the target price of the window under absorption-cost pricing.
C. Compute the markup percentage under variable-cost pricing that will allow Bramble Windows to Realize its desired ROI. (Round answer to 2 decima places, e.g. 10.50%)
D. Compute the target price of the window under variable-cost pricing.
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