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Problem 8-8A a-d (Part Level Submission) Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost
Problem 8-8A a-d (Part Level Submission) Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 4,000 units are as follows. Per Unit Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 10 Fixed selling and administrative expenses Anderson windows uses cost-plus pricing methods that are designed to provide the company with a 30% ROI on its tinted window line. A total of $1,280,000 in assets is committed to production of the new tinted window $102 $ 25 $140,000 s 116,000 Your answer is correct. Compute the markup percentage under absorption-cost pricing that will allow Anderson Windows to realize its desired ROI. Markup Percentage 60 Click if you would like to Show Work for this question: Open Show Work SHOV SOLUTION Attempts: 1 of 15 used Your answer is correct. Compute the target price of the window under absorption-cost pricing. Target price 360 Click if you would like to Show Work for this question: Open blank Show Work Copy Show Work from Previous attempt
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