Question

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information...

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.

Homework Answers

Answer #1
1
Direct materials 7.00
Direct labor 13.00
Variable manufacturing overhead 15.00
Fixed manufacturing overhead 5.00 =2385000/477000
Variable selling and administrative expenses 14.00
Fixed selling and administrative expenses 2.00 =954000/477000
Total cost per unit 56.00
2
Desired ROI per unit 14 =(26712000*25%)/477000
3
Desired ROI per unit 14.00
Divide by Total cost per unit 56.00
Markup Percentage using total cost per unit 25.00%
4
Desired ROI per unit 14
Add: Total cost per unit 56.00
Target Selling price 70.00
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Waterway Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information...
Waterway Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Waterway Corporation's anticipated annual volume of 507,000 units. Per Unit Total Direct materials $ 7 Direct labor $11 Variable manufacturing overhead $18 Fixed manufacturing overhead $3,549,000 Variable selling and administrative expenses $14 Fixed selling and administrative expenses $1,521,000 The company has a desired ROI of 25%. It has invested assets of $30,420,000. Compute the total cost per unit. Total cost per...
1. Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following...
1. 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 524,000 units. Per Unit Total Direct materials $ 6 Direct labor $11 Variable manufacturing overhead $17 Fixed manufacturing overhead $3,144,000 Variable selling and administrative expenses $17 Fixed selling and administrative expenses $1,572,000 The company has a desired ROI of 25%. It has invested assets of $31,440,000. a.) Compute the total cost per unit. b.)...
Exercise 21-05 Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The...
Exercise 21-05 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 508,000 units. Per Unit Total Direct materials $ 7 Direct labor $11 Variable manufacturing overhead $17 Fixed manufacturing overhead $3,048,000 Variable selling and administrative expenses $16 Fixed selling and administrative expenses $1,524,000 The company has a desired ROI of 25%. It has invested assets of $30,480,000. Compute the total cost per unit. Total...
Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information...
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 484,000 units. Per Unit Total Direct materials $ 6 Direct labor $13 Variable manufacturing overhead $16 Fixed manufacturing overhead $2,904,000 Variable selling and administrative expenses $12 Fixed selling and administrative expenses $1,452,000 The company has a desired ROI of 25%. It has invested assets of $27,104,000. (a) Correct answer iconYour answer is correct. Compute the...
Question 39 Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed...
Question 39 Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation’s expected annual volume of 500,000 units: Per Unit Total Direct materials $17 Direct labour 8 Variable manufacturing overhead 11 Fixed manufacturing overhead $360,000 Variable selling and administrative expenses 4 Fixed selling and administrative expenses 150,000 The company has a desired ROI of 25%. It has invested assets of $24,000,000. (a) Using absorption-cost pricing, calculate the markup percentage. (Round answer to 2 decimal places,...
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation’s expected...
Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation’s expected annual volume of 500,000 units: Per Unit Total Direct materials $13 Direct labour 6 Variable manufacturing overhead 14 Fixed manufacturing overhead $350,000 Variable selling and administrative expenses 6 Fixed selling and administrative expenses 150,000 The company has a desired ROI of 30%. It has invested assets of $23,700,000. 1)Calculate the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25.) 2)Calculate the...
Question 4: 14 Marks Use cost-plus pricing to determine various amounts. Ahmed Corporation makes a mechanical...
Question 4: 14 Marks Use cost-plus pricing to determine various amounts. Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units: Per Unit Total Direct materials $17 Direct labour 8 Variable selling and administrative expenses 11 Fixed manufacturing overhead $360,000 Variable selling and administrative expenses 4 Fixed selling and administrative expenses 150,000 The company has a desired ROI of 25%. It has invested assets of $24 million. Instructions (a)...
Question 4: 14 Marks Use cost-plus pricing to determine various amounts. Ahmed Corporation makes a mechanical...
Question 4: 14 Marks Use cost-plus pricing to determine various amounts. Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units: Per Unit Total Direct materials $17 Direct labour 8 Variable selling and administrative expenses 11 Fixed manufacturing overhead $360,000 Variable selling and administrative expenses 4 Fixed selling and administrative expenses 150,000 The company has a desired ROI of 25%. It has invested assets of $24 million. Instructions (a)...
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated...
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 33,900 units. Per Unit Total Direct materials $17 Direct labor $5 Variable manufacturing overhead $12 Fixed manufacturing overhead $339,000 Variable selling and administrative expenses $6 Fixed selling and administrative expenses $101,700 The company uses a 44% markup percentage on total cost. 1) Total cost per unit 2) Calculate fixed manufacturing overhead per unit 3) Calculate fixed selling and administrative expenses per...
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $40,...
Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $40, direct labor $21, variable manufacturing overhead $14, fixed manufacturing overhead $45, variable selling and administrative expenses $14, and fixed selling and administrative expenses $26. Its desired ROI per unit is $28.80. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%.) Markup percentage %
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT