Crawford Company's plans for a new product require atarget cost per unit of $33.33. It plans to sell 30,000 unitsat $40 per unit. The average investment, including designand development, is $900,000.Required:1. Compute the expected margin for Crawford Company.(Round your percentage answer rounded to two decimalplaces (i.e., 0.1234 should be entered as 12.34).)Expected margin16.682. Compute the expected turnover for Crawford Company.(Round your answer to 2 decimal places.)Expected turnover1,200,000.003. Compute the ROI for Crawford Company. (Roundintermediate calculations to 2 decimal places. Enter yourpercentage answer rounded to two decimal places (i.e.,0.1234 should be entered as 12.34).)11.12ROI

1) Expected margin=sales-cost of goods sold ÷ sales (or) revenue -cost÷ revenue sales =…

Answered: 1. Compute the expected margin for…

1. Compute the expected margin for Crawford Company. (Round your percentage answer rounded to two decimal places (i.e., 0.1234 should be entered as 12.34).)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Question

Crawford Company's plans for a new product require a
target cost per unit of $33.33. It plans to sell 30,000 units
at $40 per unit. The average investment, including design
and development, is $900,000.
Required:
1. Compute the expected margin for Crawford Company.
(Round your percentage answer rounded to two decimal
places (i.e., 0.1234 should be entered as 12.34).)
Expected margin
16.68
2. Compute the expected turnover for Crawford Company.
(Round your answer to 2 decimal places.)
Expected turnover
1,200,000.00
3. Compute the ROI for Crawford Company. (Round
intermediate calculations to 2 decimal places. Enter your
percentage answer rounded to two decimal places (i.e.,
0.1234 should be entered as 12.34).)
11.12
ROI

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