e8-5 - Name: Date: Instructor: Course: rd Managerial...

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FileName: 2a09873f1a525ab694ba98088eb66fca3899633b.xls, Tab: Exercise E8-5, Page 1 of 2, 12/28/2011, 19:01:40 Name: Date: Instructor: Course: is available for Marlowe Corporation's anticipated annual volume of 500,000 units. Per Unit Total Direct materials $7 Direct labor $9 Variable manufacturing overhead $15 Fixed manufacturing overhead $3,300,000 Variable selling and admin expenses $14 Fixed selling and admin expenses $1,500,000 The company has a desired ROI of 25% It has invested assets of $24,000,000 Instructions: Total cost per unit: Per Unit Title Amount Title Amount Title Amount Title Amount Title Amount Title Amount Total cost per unit: Formula Desired ROI per unit = Title X Title ÷ Title Desired ROI per unit = Percentage X Amount ÷ Amount Desired ROI per unit = Formula Markup percentage = Title Title Markup percentage = Amount Amount Markup percentage = Formuka Target selling price = Title + Title Target selling price = Amount + Formula Target selling price = Formula Managerial Accounting, 3
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e8-5 - Name: Date: Instructor: Course: rd Managerial...

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