Riverbed Computer Parts Inc. is in the process of setting a selling price on a new...

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Riverbed 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 53,000 units. Per Unit Total Direct materials $43 Direct labor $24 Variable manufacturing overhead $19 Fixed manufacturing overhead $636,000 Variable selling and administrative expenses $18 Fixed selling and administrative expenses $424,000 Riverbed Computer Parts management requests that the total unit cost be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of $1,060,000. Compute the markup percentage and target selling price that will allow Riverbed Computer Parts to earn its desired ROI of 25% on this new component. (Round markup percentage to 2 decimal places, e.g. 10.50%.) Markup percentage 4.03 % Target selling price $ 129 eTextbook and Media Assuming that the volume is 42,400 units, compute the markup percentage and target selling price that will allow Riverbed Computer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.) Markup percentage % Target selling price $ Riverbed 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 53,000 units. Per Unit Total Direct materials $43 Direct labor $24 Variable manufacturing overhead $19 Fixed manufacturing overhead $636,000 Variable selling and administrative expenses $18 Fixed selling and administrative expenses $424,000 Riverbed Computer Parts management requests that the total unit cost be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of $1,060,000. Compute the markup percentage and target selling price that will allow Riverbed Computer Parts to earn its desired ROI of 25% on this new component. (Round markup percentage to 2 decimal places, e.g. 10.50%.) Markup percentage 4.03 % Target selling price $ 129 eTextbook and Media Assuming that the volume is 42,400 units, compute the markup percentage and target selling price that will allow Riverbed Computer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.) Markup percentage % Target selling price $

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Compile Mansup Perlat and target Selling Price Units 53000 Vanable ... View the full answer