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History Bookmarks Window Help ? edugen.wileyplus.com Basic Financial Calculator Download rb...nts - RARBG Facebook Exercise M-5 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 483,000 units. Per Unit Total Direct materials Direct labor 6.78 $11.23 $15.15 OVIE Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $3,294,060 $13.87 $1,415,190 The company has a desired ROI of 27%. It has invested assets of $27,254,000. Your answer is incorrect. Try again. Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.5o.) Total cost per unit LINK TO TEXT VIDEO: S?MILAR EXERCISE Your answer is correct. Compute the desired ROI per unit. (Round answer to 2 decimal places, e.g. 10.50.) Desired ROI per unit 15.24 SHOW SOLUTION SHOW ANSWER VIDEO SIMILAR EXERCISE LINK TO TEXT X Your answer is incorrect. Try again. Compute the markup percentage using total cost per unit. (Round answer to 2 decimal places, e.g. 10.50

Explanation / Answer

Solution: a. The total cost per unit 56.78 Working Notes: Per Unit Direct materials 6.78 Direct labor 11.23 Variable manufacturing overhead 15.15 Fixed manufacturing overhead 6.82 Variable selling and administrative expenses 13.87 Fixed selling and administrative expenses 2.93 Total cost per unit 56.78 Notes: Fixed manufacturing overhead = $3,294,060 /483,000 = $6.82 per unit Fixed selling and administrative expenses =$1,415,190/483,000 =$2.93 per unit b. Desired ROI per unit 15.24 Working Notes: Invested assets 27,254,000 a ROI percentage 27% b Return on investment 7,358,580 c= a x b Estimated annual volume 483,000 d Desired ROI per unit 15.23516 e = c/d $15.24 rounded off c. Markup percentage using total cost per unit 26.84% Working Notes: Desired ROI per unit 15.24 a Total cost per unit 56.78 b Markup Percentage 0.2684 c=a/b 26.84% d. Target selling price 72.02 Working Notes: Total cost per unit 56.78 a Desired ROI per unit 15.24 b Target selling price 72.02 c=a+b Please feel free to ask if anything about above solution in comment section of the question.

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