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National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Unit
National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Unit Total Direct materials $25 Direct labor $40 Variable manufacturing overhead $10 Fixed manufacturing overhead $1,440,000 Variable selling and administrative expenses $5 Fixed selling and administrative expenses $960,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.) OPTIMUS COMPANY Home Division Responsibility Report Sales ROI 69 > > > Budget +A $ $ Actual % $ $ % tA (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.) OPTIMUS COMPANY Home Division Responsibility Report % $ Actual % $ Difference Favorable Unfavorable Neither Favorable nor Unfavorable %
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