P8 - P8-1A Lafluer Corporation needs to set a target price...

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P8-1A Lafluer 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 $20 Direct labor $42 Variable manufacturing overhead $10 Fixed manufacturing overhead $1,440,000 Variable selling and administrative expenses $ 5 Fixed selling and administrative expenses $1,040,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year. Lafluer uses cost-plus pricing methods to set its target selling price. The markup on total unit cost is 30%. Instructions (a) Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14–M16. (b) Compute the desired ROI per unit for M14–M16. (c) Compute the target selling price for M14–M16. (d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14–M16s are sold during the year. (Round to 2 decimal places.) P8-2A Bolus Computer Parts Inc. is in the process of setting a selling price on a new
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P8 - P8-1A Lafluer Corporation needs to set a target price...

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