Problem 22-2A

b. Assuming that the volume is 39200 units, compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 23% on this new computer. (round answer to 2 decimal places)

*Problem 22-2A (Part Level Submission) Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 54,000 units Per Unit $ 55 $ 29 $ 23 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 756,000 16 $270,000 Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 23 % retumon investment (ROI) on invested assets of $ 1,123,300 Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 23 % on this new component. (Round answers to 2 decimal places, e.g. 10.50.) 1% Target selling price $ Attempts: 0 of 3 used The parts of this question must be completed in order. This part wil be available when you complete the part above