Harrington Corporation needs to set a target price for its newly designed product R2D2. The following data
Question:
These costs are based on a budgeted volume of 100,000 units produced and sold each year. Harrington 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 R2D2.
(b) Compute the desired ROI per unit for R2D2.
(c) Compute the target selling price for R2D2.
(d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 80,000 R2D2s are sold during theyear.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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