Schopp Corporation makes a mechanical stuffed alligator that sings the Martian n
ID: 2555663 • Letter: S
Question
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 $ 7.01 Direct labor $11.17 Variable manufacturing overhead $15.09 Fixed manufacturing overhead $3,385,040 Variable selling and administrative expenses $13.82 Fixed selling and administrative expenses $1,781,600 The company has a desired ROI of 23%. It has invested assets of $27,715,000. Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.) Total cost per unit $ LINK TO TEXT Compute the desired ROI per unit. (Round answer to 2 decimal places, e.g. 10.50.) Desired ROI per unit $ Compute the markup percentage using total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.) Markup percentage using total cost per unit % Compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.) Target selling price $
Explanation / Answer
1
Calculation of total cost per unit
Particulars
Amount per unit
Direct materials
$7.01
Direct labour
$11.17
Variable manufacturing overheads
$15.09
Fixed manf overheads
(3,385,040/524,000)
$6.46
Variable selling and admin exp
$13.82
Fixed selling and admin exp
(1,781,600/524,000)
$3.40
Total cost per unit
$56.95
2
Desired Return per unit
Assets
$27,715,000
ROI
23%
Desired return total
$6,374,450
Per unit desired return (6,374,450/524,000)
$12.16
3
Mark up % on cost
Total cost per unit
$56.95
Desired return per unit
$12.16
Return % on cost (12.16/56.95*100)
21.36%
4
Selling price per unit
Total cost per unit
$56.95
Desired return per unit
$12.16
Selling price per unit
$69.11
1
Calculation of total cost per unit
Particulars
Amount per unit
Direct materials
$7.01
Direct labour
$11.17
Variable manufacturing overheads
$15.09
Fixed manf overheads
(3,385,040/524,000)
$6.46
Variable selling and admin exp
$13.82
Fixed selling and admin exp
(1,781,600/524,000)
$3.40
Total cost per unit
$56.95
2
Desired Return per unit
Assets
$27,715,000
ROI
23%
Desired return total
$6,374,450
Per unit desired return (6,374,450/524,000)
$12.16
3
Mark up % on cost
Total cost per unit
$56.95
Desired return per unit
$12.16
Return % on cost (12.16/56.95*100)
21.36%
4
Selling price per unit
Total cost per unit
$56.95
Desired return per unit
$12.16
Selling price per unit
$69.11
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.