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please complete each part and number 1 A76 IX fo AA B C D E 1 P8-1A Use cost-plus pricing to determine various amounts. 2
please complete each part and number 1
A76 IX fo AA B C D E 1 P8-1A Use cost-plus pricing to determine various amounts. 2 National Corporation needs to set a target price for its newly designed product M14-M16. The following data 3 relate to this new product. Per Unit Total Direct materials $25 Direct labor $40 Variable manufacturing overhead Fixed manufacturing overhead $1,440,000 Variable selling and administrative expenses Fixed selling and administrative expenses $960,000 $10 11 12 These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus 13 pricing methods to set its target selling price. The markup percentage on total unit cost is 40%. 15 Instructions 16 (a) Compute the total variable cost per unit, total fixed cost per unit and total cost per unit for M14-M16. 17(b) Compute the desired ROI per unit for M14-M16. 18 () Compute the target selling price for M14-M16. 19 (d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14-M16s 20 are sold during the year. 21 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 25 (a) Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16. Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Variable cost per unit Value Value Value Value 2 TE81 E82 E8: 5PB-1AP8-7ACD8 A76 X V S A B C D E 25 (a) Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16. Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Variable cost per unit Value Value Value Value Total Costs Value Value ? Fixed manufacturing overhead Fixed selling and administrative expenses Fixed cost per unit + Budgeted Volume Value Value Value = = = Cost per Unit Value Value ? + Variable cost per unit Fixed cost per unit Total cost per unit Value Value 43(b) Compute the desired ROI per unit for M14-M16. 44 Total cost per unit Markup percentage centage Desired ROI per unit Value Value 50 (c) Compute the target selling price for M14-M16. Total cost per unit Desired ROI per unit Target selling price Value Value A B C D 1 EL (c) Compute the target selling price for M14-M16. Total cost per unit Desired ROI per unit Target selling price Value Value J(d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14-M16s are sold during the year. Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses Variable cost per unit Value Value Value Value ? Total Costs + Value + Value Budgeted Volume Value Value Value Cost per Unit ? Fixed manufacturing overhead Fixed selling and administrative expenses Fixed cost per unit = Variable cost per unit Fixed cost per unit Total cost per unit Value Value Assume that the company wishes to earn a return of 45% of the selling price and variable manufacturing overhead costs increase to $12. What is the impact of this change on part (a), (b) and (c) of your calculations? (Round calculation of desired ROI per unit and target selling price to 2 decimal points) E8-1 E84 E8-5 PB-1A P8-7A CD A Step by Step Solution
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