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Exercise 15.23 Bridgeport company plans to sell 22,000 units at a price of $44 per unit. The cost to bring the product to market, including
Exercise 15.23 Bridgeport company plans to sell 22,000 units at a price of $44 per unit. The cost to bring the product to market, including design and development, is $850,000. The desired return on investment (ROI) is 25.88235%. Calculate the target cost per unit the company must achieve to ensure it attains its desired ROI. (Round answer to the nearest whole dollar, e.g. 15.) Target cost per unit LINK TO TEXT Exercise 15.28 A one-month summary of manufacturing costs for Blue Company follows. Direct materials Direct labour Material handling costs Product inspection and rework Materials purchasing and inspection Routine maintenance and equipment servicing Repair of equipment $33,000 16,500 2,100 2,600 500 1,300 400 Your answer is partially correct. Try again. Classify each cost as value-added or non-value-added. Cost Classification Direct materials Value-added Direct labour Value-added Material handling costs Non-value-added v Product inspection and rework Non-value-added v Materials purchasing and inspection Non-value-added v Routine maintenance and equipment servicing X Non-value-added v X Non-value-added v Repair of equipment LINK TO TEXT x Your answer is incorrect. Try again. Sum the non-value-added costs. Sum of non-value-added costs What percentage of total costs is non-value-added? (Round answer to 2 decimal places, e.g. 15.25%.) Percentage of non-value-added costs to total cost J% LINK TO TEXT
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