Gundy Corporation produces area rugs. The following per unitcost information is available: direct materials $15, direct labor$8, variable manufacturing overhead $5, fixed manufacturingoverhead $5, variable selling and administrative expenses $2, andfixed selling and administrative expenses $5. Using a 37% markup ontotal per unit cost, compute the target selling price.(Round answer to 2 decimal places, e.g.10.50.)
Target Selling price = ??
Gundy Corporation produces area rugs. The following per unitcost information is available: direct materials $15, direct labor$8, variable manufacturing overhead $5, fixed manufacturingoverhead $5, variable selling and administrative expenses $2, andfixed selling and administrative expenses $5. Using a 37% markup ontotal per unit cost, compute the target selling price.(Round answer to 2 decimal places, e.g.10.50.)
Target Selling price = ??
Related questions
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 47,000 units.
| Per Unit | Total | |
| Direct Materials | $47 | |
| Direct Labor | $21 | |
| Variable manufacturing overhead | $18 | |
| Fixed manufacturing overhead | $611,000 | |
| Variable selling and administrative expenses | $15 | |
| Fixed selling and administrative expenses | $235,000 |
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 24% return on investment (ROI) on invested assets of $1,263,900.
Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 24% on this new component. (Round answers to 2 decimal places, e.g. 10.50.)
Assuming that the volume is 40,500 units, compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 24% on this new component. (Round answers to 2 decimal places, e.g. 10.50.)
