E9.22 (LO 2) Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation: Per Unit Total Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $380 290 72 55 b. Calculate the desired ROI per unit. c. Calculate the target selling price. $1,800,000 324,000 The company has a desired ROI of 20%. It has invested assets of $51 million. It expects to produce 3,000 units each year. Instructions a. Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
E9.22 (LO 2) Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation: Per Unit Total Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $380 290 72 55 b. Calculate the desired ROI per unit. c. Calculate the target selling price. $1,800,000 324,000 The company has a desired ROI of 20%. It has invested assets of $51 million. It expects to produce 3,000 units each year. Instructions a. Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Use cost-plus pricing to determine various amounts.
E9.22 (LO 2) Caan Corporation produces industrial robots for high-precision
manufacturing. The following information is given for Caan Corporation:
Per Unit Total
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$380
290
72
55
$1,800,000
324,000
The company has a desired ROI of 20%. It has invested assets of $51 million. It expects
to produce 3,000 units each year.
Instructions
a. Calculate the cost per unit of the fixed manufacturing overhead and the fixed
selling and administrative expenses.
b. Calculate the desired ROI per unit.
c. Calculate the target selling price.
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