Problem M-1 (Part Level Submission) (a) Open Show Work SHOW SOLUTION SHOW ANSWER
ID: 2568902 • Letter: P
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Problem M-1 (Part Level Submission)
(a)
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(b)
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Problem M-1 (Part Level Submission)
National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product.Per Unit Total Direct materials $23 Direct labor $36 Variable manufacturing overhead $14 Fixed manufacturing overhead $1,264,000 Variable selling and administrative expenses $6 Fixed selling and administrative expenses $790,000
These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 45%.
(a)
Your answer is correct. Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14–M16.Variable cost per unit $ Fixed cost per unit Total cost per unit $ Click if you would like to Show Work for this question:
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Compute the desired ROI per unit for M14–M16. (Round answer to 2 decimal places, e.g. 10.50.)Desired ROI $ per unit Click if you would like to Show Work for this question:
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Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Amount Variable cost per unit : Direct Materials per unit 23.00 Direct Labor per unit 36.00 Variable manufacturing overhead per unit 14.00 Variable selling and administrative expenses per unit 6.00 Total variable cost per unit 79.00 Fixed cost per unit: Fixed manufacturing overhead = 1264000/79000 16.00 Fixed selling and administrative expenses = 790,000/79000 10.00 Total fixed cost per unit 26.00 Total cost per unit 105.00 b) Markup % = 105 * 45% 47.25 Desired ROI per unit 47.25
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