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Only letter C please Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is
Only letter C please
Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 94 Variable manufacturing overhead $ 71 Fixed manufacturing overhead $ 50,000 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25%% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. (a) Your Answer Correct Answer (Used) Compute the markup percentage under variable costing that will allow Bonita Products its desired ROL (Round answer to 2 decimal places, eg. 10.50%] Markup Percentage 18.41 Your answer is correct. Compute the target price of the new product under variable-cost pricing. (Round answer to 2 decimal places, es. 10.50) Target price $ 416.75 eTextbook and Media Attempts: 2 of J used (c) Compute the markup percentage under absorption-costing that will allow Bonita Products its desired ROL (Round answer to 2 decimal places, eg. 10.50%) Markup percentageStep by Step Solution
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