Cheyenne Windows Inc. is in the process of setting a target price on its newly designed...
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Cheyenne 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 4,000 units are as follows. Per Unit Total Direct materials $ 102 Direct labor $ 67 Variable manufacturing overhead $ 16 Fixed manufacturing overhead $ 140,000 Variable selling and administrative expenses $ 15 Fixed selling and administrative expenses $ 156,000 Cheyenne Windows uses cost-plus pricing methods that are designed to provide the company with a 30% ROI on its tinted window line. A total of $1,040,000 in assets is committed to production of the new tinted window. (a) Your answer is correct. Compute the markup percentage under absorption-cost pricing that will allow Cheyenne Windows to realize its desired ROI. Markup Percentage 60 % (b) (c) Your answer is correct. Compute the target price of the window under absorption-cost pricing. Target price $ 1A eTextbook and Media Your answer is correct. 352 Attempts: 1 of 2 used Compute the markup percentage under variable-cost pricing that will allow Cheyenne Windows to realize its desired ROI. (Round answer to 2 decimal places, e.g. 10.50%.) Markup percentage 76 % (d) Compute the target price of the window under variable-cost pricing. Target price $ Cheyenne 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 4,000 units are as follows. Per Unit Total Direct materials $ 102 Direct labor $ 67 Variable manufacturing overhead $ 16 Fixed manufacturing overhead $ 140,000 Variable selling and administrative expenses $ 15 Fixed selling and administrative expenses $ 156,000 Cheyenne Windows uses cost-plus pricing methods that are designed to provide the company with a 30% ROI on its tinted window line. A total of $1,040,000 in assets is committed to production of the new tinted window. (a) Your answer is correct. Compute the markup percentage under absorption-cost pricing that will allow Cheyenne Windows to realize its desired ROI. Markup Percentage 60 % (b) (c) Your answer is correct. Compute the target price of the window under absorption-cost pricing. Target price $ 1A eTextbook and Media Your answer is correct. 352 Attempts: 1 of 2 used Compute the markup percentage under variable-cost pricing that will allow Cheyenne Windows to realize its desired ROI. (Round answer to 2 decimal places, e.g. 10.50%.) Markup percentage 76 % (d) Compute the target price of the window under variable-cost pricing. Target price $
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