(a) * Your answer is incorrect. Compute the markup percentage under absorption-cost pricing that will allow Marigold Windows to realize its desired ROI. Markup Percentage (b) eTextbook and Media 25 % Compute the target price of the window under absorption-cost pricing. Target price $ Assistance Used Attempts: 2 of 2 used
(a) * Your answer is incorrect. Compute the markup percentage under absorption-cost pricing that will allow Marigold Windows to realize its desired ROI. Markup Percentage (b) eTextbook and Media 25 % Compute the target price of the window under absorption-cost pricing. Target price $ Assistance Used Attempts: 2 of 2 used
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please provide answer in text (Without image)
Transcribed Image Text:Marigold Windows Inc. is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window
at a budgeted volume of 3,760 units are as follows.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a)
* Your answer is incorrect.
Markup Percentage
(b)
Per Unit
eTextbook and Media
$ 110
$ 60
$ 20
Marigold Windows uses cost-plus pricing methods that are designed to provide the company with a 25% ROI on its tinted window
line. A total of $955,040 in assets is committed to production of the new tinted window.
$ 10
Target price $
Total
Compute the markup percentage under absorption-cost pricing that will allow Marigold Windows to realize its desired ROI.
$ 112,800
25 %
$
95,880
Compute the target price of the window under absorption-cost pricing.
Assistance Used
Attempts: 2 of 2 used
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