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please complete each part and number 1 A A B C D E F G H I L L 1 E8-5 Use cost-plus pricing to
please complete each part and number 1
A A B C D E F G H I L L 1 E8-5 Use cost-plus pricing to determine various amounts 2 Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. 3 The following information is available for Schopp Corporation's anticipated annual volume of 4 500,000 units Per Unit Total Direct materials $7 Direct labor $11 Variable manufacturing overhead $15 Fixed manufacturing overhead $3,000,000 Variable selling and administrative expenses $14 Fixed selling and administrative expenses $1,500,000 13 The company has a desired ROI of 25%. It has invested assets of $28,000,000 15 Instructions 16 (a) Compute the total cost per unit. 17 (6) Compute the desired ROI per unit. 18 (c) Compute the markup percentage using total cost per unit. 19 (d) Compute the target selling price. 20 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 24 (a) Compute the total cost per unit. Per Unit Value Value Value Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Total cost per unit E8-1 E84 E8-5 P8-1A | P8-7ACD8 | Value 4 A B C D E Fixed selling and administrative expenses Total cost per unit 34 (b) Compute the desired ROI per unit. Value Value Invested assets ROI percentage Return on investment Estimated annual volume Desired ROI per unit Value 43(c) Compute the markup percentage using total cost per unit. Desired ROI per unit Total cost per unit Markup Percentage Value Value 50 (d) Compute the target selling price. Total cost per unit Desired ROI per unit Target selling price Value Value Assume that the company wishes to earn a return of 30% of the selling price. What is the impact of this change on your calculations? (Round to nearest dollar.) E81 E84 E8- 5P8-14 | P87ACD8 Ready Type here to search Step by Step Solution
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