Peel Plastic Inc. (PP) is in the plastic injection molding one of the most popular manufacturing methods for producing plastic components across the globe. To guarantee a consistent level of quality, PPI has to consider and control a range of parameters within the process, such as temperature, mold design and machine efficiency. By focusing both on the process and the service PPI provides designers and assemblers can ensure thelt plastic parts will be both high-quality and produced efficiently. When it comes to pricing the plastic components, PPI owns some level of flexibility since this is a quality product. Using PPI's strategic information plus an application of several pricing methods, the company can then set the final price for their offering Here is some financial information to look at Yotal costs Variable manufacturing $ 4,672,000 Variable selling and dinistrative 342.650 Facility level fixed overhead 2,337,825 Fixed selling and administrative 667,495 Batch-level fixed overhead 352,000 Total Investment in product line 22,343,000 Expected sales (units) 54,000 Although the demand for PPI's part has been growing for the past few years, management is still concerned about the cyclical nature of this industry as well as the current market share and profits during the industry's downturn PPI expects to manufacture and sell 54,000 parts in the coming year. Required: 1. Using a markup of 45% of full manufacturing cost, calculate the price for the part 2 Using a markup of 23% of full life cycle cost, calculate the price for the part 3. Using a desired gross margin percentage to sales of 43%, calculate the price for the part. 4. Using a desired life-cyce cost margin percentage to sales of 20%, calculatethe price for the part. 5. Using a desired before tax return on investment of 12%, calculate the price for the part. 6. For each of the methods in requirements through 5. calculate the total contribution margin and total operating profit. Complete this question by entering your answers in the tabs below batch level fixed overhead Total investment in product line Expected sales (units) 352,000 22.142,000 54,000 Although the demand for PPI's part has been growing for the past few years, management is still concerned about the cyclical nature of this industry as well as the current market share and profits during the industry's downturn. PPI expects to manufacture and sell 54,000 parts in the coming year 9:30 Required: 1. Using a markup of 45% of full manufacturing cost, calculate the price for the part. 2. Using a markup of 23% of full life-cycle cost, calculate the price for the part. 3. Using a desired gross margin percentage to sales of 43%, calculate the price for the part. 4. Using a desired life-cycle cost margin percentage to sales of 20%, calculatethe price for the part. 5. Using a desired before tax return on investment of 12%, calculate the price for the part 6. For each of the methods in requirements through 5, calculate the total contribution margin and total operating profit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6 Determine the price for the part using a markup of 45% of full manufacturing cost. (Do not found intermediate calculations Round your answer to 4 decimal places) Proo per unit Het Pequired 2 >
