part 6

Return to questa Exercise 13-35 (Static) Pricing [LO 13-4) Williams Incorporated produces a single product, a part used in the manufacture of automobile transmissions. Known for its quality and performance, the part is sold to luxury auto manufacturers around the world. Because this is a quality product, Williams has some flexibility in pricing the part. The firm calculates the price using a variety of pricing methods and then chooses the final price based on that information and other strategic information. A summary of the key cost information follows. Williams expects to manufacture and sell 50,000 parts in the coming year. While the demand for Williams's part has been growing in the past 2 years, management is not only aware of the cyclical nature of the automobile industry, but also concerned about market share and profits during the industry's current downturn. 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 $ 4,680,000 855,650 2,345,875 675,495 360,000 22,350,000 50,000 Required: 1 Determine the price for the part using a markup of 45% of full manufacturing cost. 2. Determine the price for the part using a markup of 25% 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 25% 5. Determine the price for the part using a desired before tax return on investment of 15% 6. Determine the total contribution margin and total operating profit for each of the methods in requirements through 5. Check my work mode: This shows what is corrector work you have pleted. Hot indicare compte Return to question 6 Input ---- 5. Determine the price for the part using a desired before tax return on investment of 15% 6. Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through 5. Answer is complete but not entirely correct. 1 points Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required Determine the total contribution margin and total operating profit for each of the methods in requirements 1 through S. (Do not round intermediate calculations.) Operating Method Contribution Margin Pront Markup on ful manufacturing cost 5.173.869 1.792,499 Markup on feede costs 5.610,625 2.229.255 Price to achieve desired OM% 6,774,142 3.399,772 Price to achieve desired LCC $ 6,363,710 2.972,340 Price to achieve desired RCA of 15% $ 6,733.870 3,352 500