Wiliams incorporated produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Wiliams has some fexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on thot information and other strategic information. A summary of the key cost information follows. Willams expects to manufocture and sell 57,000 parts in the coming year. While the demand for Williams's part has been growing in the past 2 years, management is not only aware of the cyclical nature of the automoblle industry, but also concerned about market share and profits during the industry's current downturn. Required: 1. Determine the price for the part using a markup of 33% of full manufacturing cost. 2. Determine the price for the part using a markup of 23% of full life-cycle cost. 3. Determine the price for the part using a desired gross margin percentage to sales of 44%. 4. Determine the price for the part using a desired life-cycle cost margin percentage to sales of 30%. 5. Determine the price for the part using a desired before-tax return on investment of 11\%: 6. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5. Complete this question by entering your answers in the tabs below. Determine the total contribution margin and total operating profit for each of the methods in requirements I through 5 . (Oo not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5 . (Do not round intermediate calculations.) Wiliams incorporated produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexblility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Wililams expects to manufacture and sell 57,000 parts in the coming year. While the demand for Williams's part has been growing in the past 2 years, management is not only aware of the cyclical nature of the automoble industry, but aiso concerned about market share and profits during the industry's current downturn
