Question
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per UnitTotal Direct materials$390Direct labor$300Variable manufacturing overhead$73Fixed manufacturing overhead$1,395,000Variable
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per UnitTotalDirect materials$390Direct labor$300Variable manufacturing overhead$73Fixed manufacturing overhead$1,395,000Variable selling and administrative expenses$56Fixed selling and administrative expenses$337,900
The company has a desired ROI of15%. It has invested assets of $74,400,000. It anticipates production of3,100units per year.
(a)
Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
what is the Fixed manufacturing overhead? And the Fixed selling and administrative expenses? What is the desired ROI per unit? What is the target selling price?
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