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Lowell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following

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Lowell 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 45.000 units Total Per Unit $46 $26 $17 Direct materials Direct labor Variable manufacturing overhead Foed manufacturing overbread Variable selling and administrative expenses Fixed selling and administrative expenses $495.000 $15 $360,000 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 18 return on investment (Roll on invested set of 51.000.000 Computer the map percentage and targeting price that willow Lovel Comuter Parts to earn its desired ROI of 18% on component found markup percentage to 2 decimal places, s. 10.50%) 5 R P D G . J K B N . command oplio $495,000 Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $15 $360,000 Lovell Computer Parts management requests that the total cost per unit be used in cost.plus pricing its products. On this particu product management also directs that the target price be set to provide a 18% return on investment (Ron on invested assets of $1,000,000 Your answer is partially correct. Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 18% on this new component. (Round markup percentage to 2 decimal places, es. 10.50%) Markup percentage 377 % Target selling price $ eTextbook and Media co 7 R U D F G K 2 V B N M e Textbook and Media Your answer is partially correct Assuming that the volume is 36.000 units, compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 18% on this new component. (Round answers to 2 decimal places, s. 10.50% or 10.50) Markup percentage 11 % Target selling price 5 eTextbook and Media Attempts: 2 of 3 used SA 5 w R Y F G H J K B. N M M 24 mond

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