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
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.
![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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