Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 96 Variable manufacturing overhead 71 Fixed manufacturing overhead s s0,00 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. la) Compute the markup percentage untler variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, es. 10.50%.) Markup Percentage Save for Later Attempts: 0 of 1 used Submit Answer

Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 96 Variable manufacturing overhead 71 Fixed manufacturing overhead s s0,00 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. la) Compute the markup percentage untler variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, es. 10.50%.) Markup Percentage Save for Later Attempts: 0 of 1 used Submit Answer

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below.
Per Unit
Total
Direct materials
$ 146
Direct labor
2$
96
Variable manutacturing overhead
71
Fixed manufacturing overhead
s 5000
Variable selling and administrative expenses
$ 45
Fixed selling and administrative expenses
$ 70,000
Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to
production of the new product.
la)
Compute the markup percentage untter voriable costing that will allow Bonita Products its desired ROI. (Round answer to 2
decimal places, e.s. 10.50%.)
Markup Percentage
Save for Later
Attempts: 0 of 1 used
Submit Answer
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