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Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per Unit Total Direct materials $390 Direct labor $350
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per Unit | Total | |||||
Direct materials | $390 | |||||
Direct labor | $350 | |||||
Variable manufacturing overhead | $ 77 | |||||
Fixed manufacturing overhead | $1,502,400 | |||||
Variable selling and administrative expenses | $ 56 | |||||
Fixed selling and administrative expenses | $ 638,520 |
The company has a desired ROI of 18%. It has invested assets of $63,852,000. It anticipates production of 3,130 units per year.
a.) Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
b.) Compute the desired ROI per unit.
c.) Compute the target selling price.
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