Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
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 3,100 units are as follows: Per Unit Total Direct materials $100 Direct labour 69 Variable manufacturing overhead 20 Fixed manufacturing overhead $96,100 Variable selling and administrative expenses 11 Fixed selling and administrative expenses 78,120 Weather Guard Windows uses cost-plus pricing to provide the company with a 25% ROI on its tinted window line. It has committed a total of $806,000 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 ACCOUNTSCalculate the target price of the window under the absorption-cost approach, and show proof that the daired R01 is realized. (Round target price to 2 decimal places, 2.9. 15.25.) Target Price 3 WEATHER GUARD WINDOWS INC. Budgeted Absorption-Cost Income Statement {Tinted Window} ' s 0 0 0 0 ' Desired ROI = \"A: x 5 = 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 Price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Educational Foundations

Authors: Leslie Kaplan, James D Stice, William Owings

2nd Edition

1285968298, 9781285968292

More Books

Students also viewed these Accounting questions