Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to thisproduct at a budgeted volume of 60,000 units.Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expensesFixed selling and administrative expenses(a1)Your answer is correct.Total unit variable cost $Total unit fixed costTotal unit costeTextbook and Media(a2)Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.Per Unit$Desired ROI per unit $$30Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.$4010686Total69$2,220,0001551,920,000Compute desired ROI per unit for the new product. (Round answer to 2 decimal places, e.g. 5.27.)Attempts: 1 of 5 used

The costs of a product are classified as fixed and variable costs. The unit cost is calculated as…

Answered: (a2) Compute desired ROI per unit for…

(a2) Compute desired ROI per unit for the new product. (Round answer to 2 decimal places, e.g. 5.27.) Desired ROI per unit $ LA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this
product at a budgeted volume of 60,000 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a1)
Your answer is correct.
Total unit variable cost $
Total unit fixed cost
Total unit cost
eTextbook and Media
(a2)
Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.
Per Unit
$
Desired ROI per unit $
$30
Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.
$
40
10
6
86
Total
69
$2,220,000
155
1,920,000
Compute desired ROI per unit for the new product. (Round answer to 2 decimal places, e.g. 5.27.)
Attempts: 1 of 5 used

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