Wildhorse Look produces and sells high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure distances on the golf course. The potential market for one small laser gun, the LittleWildhorse, appears to be very large. Because of competition, Wildhorse Look does not believe that it can charge more than $120 for LittleWildhorse. At this price, Wildhorse Look believes it can sell 100,000 laser guns. LittleWildhorse will cost $8,960,000 to manufacture, and the company wants an ROI of 20%. Determine the target cost for one LittleWildhorse. (Round answer to 2 decimal places, e.g. 15.25.)

Target cost

$enter the target cost in dollars rounded to 2 decimal places

Question 2

Sheridan Corporation makes a mechanical stuffed alligator. The following information is available for Sheridan Corporations expected annual volume of 500,000 units:

		Per Unit		Total
	Direct materials	$13
	Direct labour	7
	Variable manufacturing overhead	14
	Fixed manufacturing overhead			$325,000
	Variable selling and administrative expenses	5
	Fixed selling and administrative expenses			175,000

The company has a desired ROI of 25%. It has invested assets of $24,400,000.

(a)

Correct answer icon

Your answer is correct.

Calculate the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25.)

Total cost per unit

$enter the total cost per unit in dollars

eTextbook and Media

Attempts: 1 of 3 used

(b)

Calculate the desired ROI per unit. (Round answer to 2 decimal places, e.g. 15.25.)

Desired ROI per unit

$enter the desired return on investment per unit in dollars

Question 3

Crane Corporation produces industrial robots for high-precision manufacturing. The following information is given for Crane Corporation:

		Per Unit		Total
	Direct materials	$380
	Direct labour	290
	Variable manufacturing overhead	78
	Fixed manufacturing overhead			$1,643,000
	Variable selling and administrative expenses	56
	Fixed selling and administrative expenses			310,050

The company has a desired ROI of 25%. It has invested assets of $51,140,000. It expects to produce 2,650 units each year.

(a)

Correct answer icon

Your answer is correct.

Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.

	Fixed manufacturing overhead		$enter a dollar amount per unit	per unit
	Fixed selling and administrative		$enter a dollar amount per unit	per unit

eTextbook and Media

Attempts: 2 of 3 used

(b)

Calculate the desired ROI per unit. (Round answer to 0 decimal places, e.g. 2425.)

Desired ROI

$enter the desired return on investment per unit in dollars rounded to 0 decimal places per unit

eTextbook and Media