Information for Schopp Corporation is given in E8-5.

In E8-5

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 500,000 units.

The company has a desired ROI of 25%. It has invested assets of $28,000,000.
Instructions
Using the information given in E8-5, answer the following.
(a) Compute the total cost per unit.
(b) Compute the desired ROI per unit.
(c) Using absorption-cost pricing, compute the markup percentage.
(d) Using variable-cost pricing, compute the markup percentage.

Transcribed Image Text:

Total Per Unit $ 7 $11 $15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $3,000,000 $14 1,500,000