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Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 4,000 units are as follows. Per Unit Total Direct materials $ 104 Direct labor $ 63 Variable manufacturing overhead $ 16 Fixed manufacturing overhead $ 108,000 Variable selling and administrative expenses $ 17 Fixed selling and administrative expenses $ 52,000 Anderson Windows uses cost-plus pricing methods that are designed to provide the company with a 30% ROI on its tinted window line. A total of $1,280,000 in assets is committed to production of the new tinted window. Compute the markup percentage under absorption-cost pricing that will allow Anderson Windows to realize its desired ROI. Markup Percentage do % Compute the target price of the window under absorption-cost pricing. Target price $ eTextbook and Media Compute the markup percentage under variable-cost pricing that will allow Anderson Windows to realize its desired ROI. (Round answer to 1 decimal place, e.g. 10.5%.) Markup percentage % eTextbook and Media Compute the target price of the window under variable-cost pricing. Target price $ Anderson Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 4,000 units are as follows. Per Unit Total Direct materials $ 104 Direct labor $ 63 Variable manufacturing overhead $ 16 Fixed manufacturing overhead $ 108,000 Variable selling and administrative expenses $ 17 Fixed selling and administrative expenses $ 52,000 Anderson Windows uses cost-plus pricing methods that are designed to provide the company with a 30% ROI on its tinted window line. A total of $1,280,000 in assets is committed to production of the new tinted window. Compute the markup percentage under absorption-cost pricing that will allow Anderson Windows to realize its desired ROI. Markup Percentage do % Compute the target price of the window under absorption-cost pricing. Target price $ eTextbook and Media Compute the markup percentage under variable-cost pricing that will allow Anderson Windows to realize its desired ROI. (Round answer to 1 decimal place, e.g. 10.5%.) Markup percentage % eTextbook and Media Compute the target price of the window under variable-cost pricing. Target price $
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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
Posted Date:
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