Question
Premier Landscaping offers gardening services. Each service job is expected to take 2 hours. The company anticipates 1,200 jobs annually. They have invested $1,200,000 in
Premier Landscaping offers gardening services. Each service job is expected to take 2 hours. The company anticipates 1,200 jobs annually. They have invested $1,200,000 in their facilities and expect an ROI of 22%. The budgeted costs for the coming year are shown below:
| Cost Item | Per Job ($) | Total ($) |
|---|---|---|
| Direct Materials (Plants, etc.) | 25 | 30,000 |
| Direct Labor (Gardeners) | 60 | 72,000 |
| Variable Overhead | 15 | 18,000 |
| Fixed Overhead | - | 264,000 |
| Variable Selling & Admin Expenses | 10 | 12,000 |
| Fixed Selling & Admin Expenses | - | 84,000 |
Required:
- Calculate the total cost per job.
- Determine the desired ROI per job.
- Compute the target price per job.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
2nd Edition
0078110823, 9780078110825
