Homework?

Lovell Computer Parts Inc. is in the process of setting a seling 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 50,000 units Total Per Unit $50 $26 $20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and ad d administrative expenses $600,000 $19 $400.000 Lovell 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 25% return on investment (ROI) on invested assets of $1,000,000 (a) Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 25% on this new component. (Round markup percentage to 2 decimal places, eg. 10.50%) Markup percentage Target telling price S eTextbook and Media Attempts:0 of 5 used Submit Answer (b) The parts of this to be comited in order. This art will be available when you complete the parts