Calibri Light V / 11 v BEMy Av ... Ev ab Thanks for using Office! We've made some updates to the privacy settings to give you more control. Your organization's admin allows optional cloud-backed services are provided to you under the Microsoft Services Agreement. Learn more 821 X V fx A B C D Question: Variable vs. Absorption Costing (6 marks) N PeachTree Doors Inc. is in the process of setting a target price on its newly designed patio door. Cost data relating to the donr is as follows: Expected annual volume (in units) 4,900 Per Unit Tota Direct materials $ 236.00 $ 1.156,400 9 Direct labour 162.00 $ 793.800 10 Variable manufacturing overhead 66.00 S 323,400 11 Variable selling and administrative expenses 27.00 $ 132,300 12 Fixed manufacturing overhead 114.29 $ 560,000 13 Fixed selling and administrative expenses 67.96 S 333,000 14 + In order to produce the patio door, the company had to purchase equipment and a factory building, among other assets. The company is looking to get a the following return on this investment in assets. 15 16 Investment in assets (equipment, building, other assets) 4,022,000 17 Expected return on investment 30% 18 19 Calculate the following: a. Desired return on investment (ROI) per unit b. Total cost to make one unit (manufacturing cost) c. Total variable cost per unit = & Cover Sheet Q1 Q2 Q3 Q4 Q5 Formulas + alculation Mode: Automatic Workbook StatisticsCalibri Light V/ 11 v/ BE Av ... Ev ab Thanks for using Office! We've made some updates to the privacy settings to give you more control. Your organization's admin allows optional cloud-backed services are provided to you under the Microsoft Services Agreement. Learn more B21 V X V f A B C D Per Unit Total 100 Direct materials $ 236.00 S 1,156,400 9 Direct labour $ 162.00 $ 793,800 10 Variable manufacturing overhead 66.00 S 323,400 11 Variable selling and administrative expenses 27.00 $ 132,300 12 Fixed manufacturing overhead 114.29 $ 560,000 13 Fixed selling and administrative expenses 67.96 S 333,000 14 In order to produce the patio door, the company had to purchase equipment and a factory building, among other assets. The company is looking to get a the following return on this investment in assets. 15 16 Investment in assets (equipment, building, other assets) $ 4,022,000 17 Expected return on investment 30% 18 19 20 Calculate the following: a. Desired return on investment (ROI) per unit b. Total cost to make one unit (manufacturing cost) c. Total variable cost per unit d. Use variable costing to determine the markup percentage e. Use your answer from part d and use variable costing to determine the selling price > = B Cover Sheet Q1 Q2 Q3 Q4 Q5 Formulas + alculation Mode: Automatic Workbook Statistics