Question
here to search Swifty Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed
here to search Swifty Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 52,000 units. Per Unit Total Direct materials Direct labor $51 $27 Variable manufacturing overhead $24 Fixed manufacturing overhead $728,000 Variable selling and administrative expenses $19 Fixed selling and administrative expenses $416.000 Swifty Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 26% return on investment (ROI) on invested assets of $1,000,000. O 47F Mostly clear
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