Question: ABC provided the following information: $65.00 Per Unit Direct Materials $48.00 Per Unit Direct Labour $16.00 Per Unit Variable Manufacturing Overhead $12.00 Per Unit Variable
ABC provided the following information:
$65.00
Per Unit Direct Materials
$48.00
Per Unit Direct Labour
$16.00
Per Unit Variable Manufacturing Overhead
$12.00
Per Unit Variable Selling Expenses
$250,000
Fixed Manufacturing Overhead
$55,000
Fixed Selling and Admin
16%
ABC's Desired ROI
$8,250,000
Invested Assets
4,000
Units per year is the expected Production and Sales.
Instructions Calculate each of the following:
Cost per unit of fixed manufacturing overhead, fixed selling, and administrative expenses.
Desired ROI per unit.
Markup percentage using the absorption-cost approach. Show your calculations. Create an Income Statement with ROI to confirm you are correct.
Markup percentage using the variable-cost approach. Show your calculations. Create an Income Statement with ROI to confirm you are correct.
PS. pls I need the correct answer in a table form thanks
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
