App_A_HW - .... $42 Exercise A-3 (10 minutes) Sales (50,000...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise A-2  (15 minutes) 1. ( ) ( ) Required ROI Selling and administrative + × Investment expenses Markup percentage  =  on absorption cost Unit product cost × Unit sales 18% × $500,000  + $60,000 $30 per unit × 12,500 units $150,000 $375,000 = 40% 2. Unit product cost. .................... $30 Markup: 40% × $30. ...............   12     Target selling price per unit.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: .... $42 Exercise A-3 (10 minutes) Sales (50,000 batteries $65 per battery). ...... $3,250,000 Less desired profit (20% $2,500,000). .......... 500,000 Target cost for 50,000 batteries. ....................... $2,750,000 Target cost per battery = ($2,750,000 50,000 batteries) = $55 per battery...
View Full Document

This note was uploaded on 06/11/2009 for the course ACC 202 taught by Professor Cox,s during the Spring '08 term at University of Hawaii, Manoa.

Page1 / 2

App_A_HW - .... $42 Exercise A-3 (10 minutes) Sales (50,000...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online