Question
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per Unit Total Direct materials $420 Direct labor $320
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per Unit Total
Direct materials $420
Direct labor $320
Variable manufacturing overhead $ 73
Fixed manufacturing overhead $1,814,800
Variable selling and administrative expenses $ 60
Fixed selling and administrative expenses $ 561,890
The company has a desired ROI of 21%. It has invested assets of $61,424,000. It anticipates production of 3,490 units per year.
Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
Fixed manfaucturing overhead $___________per unit
Fixed selling and administrative expenses $__________________per unit
Compute the desired ROI per unit.
ROI $_____________per unit
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