Linwood Company recently began production of a new navigation device, which required a capital investment of $630,000 Linwood is currently considering establishing a selling price for this new device that will ensure a 25% return on the capital investment. The engineering and the sales department compiled the following estimates for producing and selling 76,000 devices Per Unit Total (76,000 units) Direct Materials $12 Direct Labor $26 Variable Manufacturing Overhead $15 Selling and Administrative Expenses $14 Fixed Manufacturing Overhead $248,000 General and Administrative Expenses $73,000 Required: Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. a) Using the cost plus pricing method, calculate the markup percentage Full Cost: $ 56.26 Markup Percentage: 30.27 % b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a). How much would the company charge for its new navigation device? General and Administrative Expenses Required: Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places. 340 $73,000 a) Using the cost plus pricing method, calculate the markup percentage Full Cost: $ 56.26 Markup Percentage: 30.27 b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a). How much would the company charge for its new navigation device? Selling Price: c) Based on a recent consumer report, the company predicts that its device cannot be priced higher than $63. At this particular price, the company believes it can sell 84,000 units and assumes the fixed costs will remain the same. Using the target costing method, calculate the total target cost and the total manufacturing cost based on 84,000 units. Total Target Cost: $ Total Manufacturing Cost: $ 1 CRUZ TUN out of Linwood Company recently began production of a new navigation device, which required a capital investment of $630,000. Linwood is currently considering establishing a selling price for this new device that will ensure a 25% return on the capital investment. The engineering and the sales department compiled the following estimates for producing and selling 76,000 devices Per Unit Total (76,000 units) Direct Materials $12 Direct Labor $26 Variable Manufacturing Overhead $15 Selling and Administrative Expenses $14 Fixed Manufacturing Overhead General and Administrative Expenses $241,000 $73,000 Required: Do not enter dollar signs or commas in the input boxes. Bound all answers to 2 decimal places, a) Using the cost plus pricing method, calculate the markup percentage. Full Cost $ 56.26 Markup Percentage 30.27 b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a). How much would the company charge for its new navigation device? Fixed Manufacturing Overhead General and Administrative Expenses Required: $248,000 $73,000 Do not enter dollar signs or commas in the input boxes Bound all answers to 2 decimal places a) Using the cost plus pricing method calculate the markup percentage Full Cost $56.26 Markup Percentage 3027 b) The company has a cost plus pricing policy that uses the absorption (ful cost as the cost base and the markup percentage calculated in part as How much would the company charge for its new navigation device? Selling Price Based on a recent consumer report, the company predicts that its device cannot be priced higher than $63. At this particular price, the company believes it can sell 84,000 units and assumes the fixed costs will remain the same. Using the target costing method, calculate the total target cost and the total manufacturing cost based on 84,000 units. Total Target Cost: $ Total Manufacturing Cost: $ hannanjeet singh > Co