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Problem 21-02A a-b (Video) Sheridan Computer Parts Inc. is in the process of setting a selling price an a new component it has just designed
Problem 21-02A a-b (Video) Sheridan Computer Parts Inc. is in the process of setting a selling price an a new component it has just designed and devaloped. The follawing cast estimates for this new component have been provided by the accounting department for a budgeted volume of 55,000 units Per Unit Total Direct materials Direct labor Varlable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $55 $23 $770,000 $16 $275,000 Sheridan Computer parts management requests that the to a cost per unit be used n cost plus $1,000,000. c ng s products on th s particular product management aso directs at the target p ce be set to provide a 22% return on investment R Cr on invested assets of Your answer is correct Compute the markup percentage and target selling price that will allow Sheridan Computer Parts to earn its desired ROI of 22% on this new component (Round inarkupp rcentage to 2 dec mal places, e g. 0 5090 Markup percentage Target selling price %.) 2.8 14 ,places e g 10.50% or 10.50. Assuming that the volume is 44,000 units, compute the markup percentage and target selling price that will allow Sheridan Computer Parts to eam its desired ROI o 22% on this new component Markup percentage Target selling price Rou d answers to 2 dec 3.4 15
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