Gill Corporation needs to set a target price for its newly designed product M14-M16. The following data
Question:
These costs are based on a budgeted volume of 80,000 units produced and sold each year.
Gill uses cost-plus pricing methods to set its target selling price. The markup percentage 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 two decimalplaces.)
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: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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