PROBLEM 1: Suttons Electronic Repair Shop has budgeted the following time and material for 2017.

SUTTONS ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2017
		Time Charges			Material Loading Charges
Shop employees wages and benefits		$94,500
Parts managers salary and benefits						$25,400
Office employees salary and benefits		15,750				12,600
Overhead (supplies, depreciation, advertising, utilities)		21,150				16,000
Total budgeted costs		$131,400				$54,000

Suttons budgets 4,500 hours of repair time in 2017 and will bill a profit of $9 per labor hour along with a 20% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000. On January 5, 2017, Suttons is asked to submit a price estimate to fix a 72-inch flat-screen TV. Suttons estimates that this job will consume 4 hours of labor and $200 in parts. A.) Calculate the time-and-material price quotation for fixing the flat-screen TV. (Round answer to 2 decimal places, e.g. 10.50.)

Total price of labor and material

PROBLEM 2: Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 483,000 units.

		Per Unit			Total
Direct materials		$ 6.78
Direct labor		$11.23
Variable manufacturing overhead		$15.15
Fixed manufacturing overhead					$3,294,060
Variable selling and administrative expenses		$13.87
Fixed selling and administrative expenses					$1,415,190

The company has a desired ROI of 27%. It has invested assets of $27,254,000. A.) Compute the markup percentage using total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.)

Markup percentage using total cost per unit

B.) Compute the target selling price