E8.5 (LO 2), AP Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 500,000 units. Per Unit $7 11 15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested assets of $28,000,000. Instructions a. Compute the total unit cost. b. Compute the desired ROI per unit. c. Compute the markup percentage using total unit cost. d. Compute the target selling price. 14 Total $3,000,000 1,500,000

E8.5 (LO 2), AP Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 500,000 units. Per Unit $7 11 15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested assets of $28,000,000. Instructions a. Compute the total unit cost. b. Compute the desired ROI per unit. c. Compute the markup percentage using total unit cost. d. Compute the target selling price. 14 Total $3,000,000 1,500,000

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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