Help I 5ystem Problem 22-2A [Part Level Submission) in h-process of setting\" se

Question

Help I 5ystem Problem 22-2A [Part Level Submission) in h-process of setting" seing preeon ' n" oonpo wn "as jant designed and dewiped. The folo-spot ncie 22-16 Par Direct materials Direct labor 49 s 22 s 23 Pheed manufactuning overhead Vanable selling and administrative expenses22 Fixed seling and administrative expenses $ 5,000 441,000 Lovel Computer Parts management neouests thst the botal cost per unt be used in coat-pua piricing its products On this serticurar product so directs that (8) component.(Round onowers to 2 decial places,e.g. 10 50. Markup pencentage Target seling price Attempts: 0 of 3 wsedSAVE FOR LATE MacBook A

Explanation / Answer

Workings:

Computation of total cost per unit :

Desired ROI = $ 1,269,000 x 20% = $ 253,800

Desired ROI per unit = $ 253,800 / 49,000 = $ 5.18

Markup Percentage = Desired ROI / Total Unit Cost = $ 5.18 / $ 137 * 100 = 3.78 %

Target Selling Price = $ 137 + $ 5.18 = $ 142.18

Markup Percentage 3.78 %

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