Cullumber Corporation makes a mechanical stuffed alligator. The following information is available for Cullumber Corporation's expected annual volume of 500,000 units: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit Total $16 7 11 6 $400,000 180.000 The company has a desired ROI of 30%. It has invested assets of $24,300,000. V

Cullumber Corporation makes a mechanical stuffed alligator. The following information is available for Cullumber Corporation's expected annual volume of 500,000 units: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit Total $16 7 11 6 $400,000 180.000 The company has a desired ROI of 30%. It has invested assets of $24,300,000. V

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

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Using absorption-cost pricing, calculate the markup percentage. (Round answer t
Markup percentage
11.6 %
Using variable-cost pricing, calculate the markup percentage. (Rou
Markup percentage
11.6
%

Cullumber Corporation makes a mechanical stuffed alligator. The following information is available for Cullumber Corporation's
expected annual volume of 500,000 units:
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Per Unit
$16
7
11
6.
Total
$400,000
180,000
The company has a desired ROI of 30%. It has invested assets of $24,300,000.

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