Compute the markup percentage and target selling price that will allow Ayayai Computer Parts to earn its desired ROI of 25% onthis new component. (Round markup percentage to 2 decimal places, eg. 10.50%.)Markup percentageTarget selling priceeTextbook and Media$Assuming that the volume is 32,000 units, compute the markup percentage and target selling price that will allow AyayaiComputer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places, eg. 10.50% or 10.50.)Markup percentageTarget selling price Ayayai Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. Thefollowing cost estimates for this new component have been provided by the accounting department for a budgeted volume of 40,000units.Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expensesFixed selling and administrative expensesPer Unit$40$21$16$15Total$480,000$320,000Ayayai Computer Parts management requests that the total unit cost be used in cost-plus pricing its products. On this particularproduct, management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of$800,000.

Target selling price refers to the anticipated price set by a company for a product or service that…

Answered: Assuming that the volume is 32,000…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Assuming that the volume is 32,000 units, compute the markup percentage and target selling price that will allow Ayayai Computer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places, eg. 10.50% or 10.50) Markup percentage Target selling price $