Brief Exercise 8-1 Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $44. Ortega would like a profit of $15 per drive. What target cost Ortega should set to accomplish this objective? Show work (required) Brief Exercise 8-2 Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materils $18, direct labor $7, variable manufacturing overhead $4, fixed manufacturing overhead $10, variable selling and administrative expenses $2, and fixed selling and administrative expenses $13. Using a 45% markup percentage on total per unit cost, compute the target selling price. Show work (required) Brief Exercise 8-3 Jaymes Corporation produces high-performance rotors. It expects to produce 41,000 rotors in the coming year. It has invested $6,150,000 to produce rotors. The company has a required return on investment of 16%. What is its ROI per unit? Show work (required)e Brief Exercise 8-4 Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $40, direct labor $26, variable manufacturing overhead $15, fixed manufacturing overhead $38, variable selling and administrative expenses $16, and fixed selling and administrative expenses $25. Its desired ROl per unit is $27.20. Compute its markup percentage using a total-cost approach. Show work (required)e Brief Exercise 8-5 During the current year, Chudrick Corporation expects to produce 9,000 units and has budgeted the following: net income $198,000, variable costs $891,000, and fixed costs $99,000. It has invested assets of $900,000. The company's budgeted ROI was 20%. What was its budgeted markup percentage using a full-cost approach? Show work (required) Brief Exercise 8-7 The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $26, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $27. The Heating Division is operating a Heating Division should accept? Show work (required) and make sure to explain your answer. Explanation is what counts, not number itself in this question. " t full capacity. What is the minimum transfer price that the Brief Exercise 8-8 The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $26, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,900 heating units to another division within the company at a price of $27. Assume that the Heating Division has sufficient excess capacity to provide the 14.900 heating units to the other division. What is the minimum transfer price that the Heating Division should accept? Show work (required) and make sure to explain your answer. Explanation is what counts, not number itself in this question.e Brief Exercise 8-9 The Heating Division of Kobe International produces a heating element that it sells to its customers for $46 per unit. Its variable cost per unit is $26, and its fixed cost per unit is $11. Top management of Kobe International would like the Heating Division to transfer 14,800 heating units to another division within the company at a price of $27. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units and that the division's variable cost would be $28 per unit (rather than $26).What is the minimum transfer price that the Heating Division should accept? Show work (required) and make sure to explain your answer. Explanation is what counts, not number itself in this
