Compute the desired ROI per unit for M14-M16. (c) Desired ROI $ eTextbook and Media Compute the target selling price for M14-M16. Target selling price per unit $ per unit
Compute the desired ROI per unit for M14-M16. (c) Desired ROI $ eTextbook and Media Compute the target selling price for M14-M16. Target selling price per unit $ per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku

Transcribed Image Text:Ayayai Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new
product.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a)
Variable cost per unit
Fixed cost per unit
Per Unit
Total cost per unit
$28
$40
$10
These costs are based on a budgeted volume of 64,000 units produced and sold each year. Ayayai uses cost-plus pricing methods to
set its target selling price. The markup percentage on total unit cost is 40%.
$
$7
Total
Compute the total unit variable cost, total unit fixed cost, and total unit cost for M14-M16.
$1,152,000
$768,000

Transcribed Image Text:(b)
Compute the desired ROI per unit for M14-M16.
(c)
Desired ROI $
e Textbook and Media
Compute the target selling price for M14-M16.
Target selling price per unit $
per unit
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