Date: Score: Professor: ct or to a will Use erm Name: Program-Year-Section: Exercise I - Set A Puerto Princesa Company must determine a target selling price for one of its products. Cost data relating to the product are as follows: the Direct materials Per Unit P 60 Total as Direct labor 100 he Variable manufacturing overhead 30 Fixed manufacturing overhead 50 P4,500,000 by Variable administrative and selling expenses Fixed administrative and expenses 10 40 3,600,000 es a to ct Dr e f t The costs above are based on an anticipated volume of 90,000 units produced and sold each period. The company uses cost-plus pricing, and it has a policy of obtaining target selling prices by adding a markup of 50% of unit manufacturing cost or by adding a markup of 80% of variable costs. Required: 1. Compute the target selling price per unit using absorption costing. 2. Compute the target selling price per unit using contribution costing Exercise II- Set A 12,500 P Davao Company is considering the introduction of a new product. As one step o in its study of the new product, the company has gathered the following data: Number of units to be produced and sold each year Unit manufacturing cost (variable cost $400 per unit) Projected annual administrative and selling expenses (F8,000,000) 9,000,000 Estimated investment required by the company Desired ROI (Fixed cast 18% and contribution approach The company uses the absorption approach to cost-plus pricing. Required: 1. 450 7,500,000 Compute the markup the company will have to use to achieve the desired ROI under the absorption approach and contribution approach. 2. Compute the target selling price per unit. Under absorption approach and contribution approach. 411