Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of
Question:
Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 600,000 units:
Per Unit Total
Direct materials $37
Direct labor 43
Variable manufacturing overhead 65
Fixed manufacturing overhead $15,000,000
Variable selling and administrative expenses 73
Fixed selling and administrative expenses 11,400,000
The company has a desired ROI of 20%. It has invested assets of $325,000,000.
Required:
Calculate each of the following:
a). Total cost per unit.
b). Desired ROI per unit.
c). Mark-up percentage using total cost per unit.
d). Target selling price.
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso