Determine the price for the part using a markup of 37% of full manufacturing cost. 2....
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Determine the price for the part using a markup of 37% of full manufacturing cost. 2. Determine the price for the part using a markup of 24% of full life-cycle cost. 3. Determine the price for the part using a desired gross margin percentage to sales of 40% 4. Determine the price for the part using a desired life-cycle cost margin percentage to sales of 29%. 5. Determine the price for the part using a desired before-tax return on investment of 12%. 6. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5. (Do not round intermediate calculations.) Method Markup on full manufacturing cost Markup on life cycle costs Price to achieve desired GM % Price to achieve desired LCC % Price to achieve desired ROA of 12% Contribution Margin Required 6 Operating Profit Variable manufacturing Variable selling and administrative Facility-level fixed overhead Fixed selling and administrative Batch-level fixed overhead Total investment in product line Expected sales (units) Total Costs $ 4,662,000 837,650 2,327,875 657,495 342,000 22,332,000 59,000 Determine the price for the part using a markup of 37% of full manufacturing cost. 2. Determine the price for the part using a markup of 24% of full life-cycle cost. 3. Determine the price for the part using a desired gross margin percentage to sales of 40% 4. Determine the price for the part using a desired life-cycle cost margin percentage to sales of 29%. 5. Determine the price for the part using a desired before-tax return on investment of 12%. 6. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5. (Do not round intermediate calculations.) Method Markup on full manufacturing cost Markup on life cycle costs Price to achieve desired GM % Price to achieve desired LCC % Price to achieve desired ROA of 12% Contribution Margin Required 6 Operating Profit Variable manufacturing Variable selling and administrative Facility-level fixed overhead Fixed selling and administrative Batch-level fixed overhead Total investment in product line Expected sales (units) Total Costs $ 4,662,000 837,650 2,327,875 657,495 342,000 22,332,000 59,000
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To calculate the total contribution margin and total operating profit for each of the methods well use the following formulas Contribution Margin Expected Sales Total Variable Costs Operating Profit C... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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