Question
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
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 477,000 units.
| Per Unit | Total | |||||
| Direct materials | $ 7 | |||||
| Direct labor | $13 | |||||
| Variable manufacturing overhead | $15 | |||||
| Fixed manufacturing overhead | $2,385,000 | |||||
| Variable selling and administrative expenses | $14 | |||||
| Fixed selling and administrative expenses | $954,000 | |||||
The company has a desired ROI of 25%. It has invested assets of $26,712,000.
1.Compute the total cost per unit.
2. Compute the desired ROI per unit.
3.Compute the markup percentage using total cost per unit.
4.Compute the target selling price.
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Principles Of Financial Accounting (Chapters 1-17)
Authors: John Wild
24th Edition
1260158608, 9781260158601
