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Problem 9.47A a-d Weather Guard Windows Inc. is setting a target price on its newly designed tinted window. Cost data for the window at a
Problem 9.47A a-d Weather Guard Windows Inc. is setting a target price on its newly designed tinted window. Cost data for the window at a budgeted volume of 3,800 units are as follows: Total Per Unit $101 70 21 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $106,400 8 101,080 Weather Guard Windows uses cost-plus pricing to provide the company with a 40% ROI on its tinted window line. It has committed a total of $946,200 in assets to the production of the new tinted window. Calculate the markup percentage under the absorption-cost approach that will allow Weather Guard Windows to realize its desired ROI. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 15%.) Markup percentage under the absorption-cost approach SHOW LIST OF ACCOUNTS Calculate the target price of the window under the absorption-cost approach, and show proof that the desired ROI is realized. (Round target price to 2 decimal places, e.g. 15.25.) Target Price WEATHER GUARD WINDOWS INC. Budgeted Absorption-Cost Income Statement (Tinted window) Desired ROI = % x 5 SHOW LIST OF ACCOUNTS Calculate the markup percentage under the variable-cost approach that will allow Weather Guard Windows to realize its desired ROI. (Round answer to 2 decimal places, e.g. 15.25%.) Markup percentage under the variable-cost approach SHOW LIST OF ACCOUNTS Calculate the target price of the window under the variable-cost approach, and show proof that the desired ROI is realized. (Round target price to 2 decimal places, e.g. 15.25.) Target Prices WEATHER GUARD WINDOWS INC. Budgeted Variable-Cost Income Statement Tinted Window Desired ROI = $
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