Question
Pharoah Corporation produces commercial fertilizer spreaders. The following information is available for Pharoah's anticipated annual volume of 400,000 units. Per Unit Total Direct materials $30
Pharoah Corporation produces commercial fertilizer spreaders. The following information is available for Pharoah's anticipated annual volume of 400,000 units.
Per Unit | Total | ||||||
---|---|---|---|---|---|---|---|
Direct materials | $30 | ||||||
Direct labor | 54 | ||||||
Variable manufacturing overhead | 72 | ||||||
Fixed manufacturing overhead | $16,000,000 | ||||||
Variable selling and administrative expenses | 34 | ||||||
Fixed selling and administrative expenses | 12,000,000 |
The company has a desired ROI of 20%. Its investment in assets is $122,000,000.
Compute total unit cost.
Total unit cost | $enter the total unit cost in dollars |
Question Part Score
--/1.5
Compute desired ROI per unit.
Desired ROI per unit | $enter the desired return on investment per unit in dollars |
Question Part Score
--/1.5
Compute markup percentage using total unit cost. (Round answer to 0 decimal places, e.g. 20%.)
Markup percentage using total unit cost | enter the markup percentage using total unit cost rounded to 0 decimal places | % |
Question Part Score
--/1.5
Compute target selling price. (Round answer to 2 decimal places, e.g. 52.75.)
Target price per unit | $enter the target price per unit in dollars rounded to 2 decimal places |
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