PROBLEM 8

# PROBLEM 8 - \$108 Markup X 30 Desired ROI per unit \$32.40(c...

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PROBLEM 8-1A (a) Direct materials. ........................................................................... \$20 Direct labor. .................................................................................. 42 Variable manufacturing overhead. ............................................. 10 Variable selling and administrative expenses. ......................... 5 Variable cost per unit. ................................................................. \$77 Total Costs ÷ Budgeted Volume = Cost Per Unit Fixed manufacturing overhead Fixed selling and administrative expenses Fixed cost per unit \$1,440,000 1,040,000 \$2,480,000 ÷ ÷ ÷ 80,000 80,000 80,000 = = = \$18 13 \$31 Variable cost per unit. ................................................................. \$ 77.00 Fixed cost per unit. ...................................................................... 31.00 Total cost per unit. ....................................................................... \$108.00 (b) Total cost per unit.

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Unformatted text preview: ....................................................................... \$108 Markup. ......................................................................................... X ............................................................................................. 30% Desired ROI per unit. ................................................................... \$32.40 (c) Total cost per unit. ....................................................................... \$108.00 Desired ROI per unit. ................................................................... 32.40 Target selling price. ..................................................................... \$140.40 (d) Variable cost per unit. ........... \$ 77.00 (same as above) Fixed cost per unit. ................ 41.33 (\$1,440,000 + \$1,040,000) ÷ 60,000 Total cost per unit. ................. \$118.33...
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## This note was uploaded on 05/16/2011 for the course AC 303 taught by Professor Richardkido during the Spring '11 term at Chaminade University.

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PROBLEM 8 - \$108 Markup X 30 Desired ROI per unit \$32.40(c...

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