Schopp Corporation makes a mechanical stuffed alligator that sings the Martian n

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 517,000 units Per Unit Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 6.79 11.04 14.85 $ 3,463,900 13.96 $ 1,726,780 The company has a desired ROI of 25 %. It has invested assets of $ 27,457,000 . (a) Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.) Total cost per unit s

Explanation / Answer

Direct materials 6.79 Direct labor 11.04 Variable manufacturing overhead 14.85 Fixed manufacturing overhead 6.7 =3463900/517000 Variable selling and administrative expenses 13.96 Fixed selling and administrative expenses 3.34 =1726780/517000 Total cost per unit 56.68

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