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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