Heedy Manufacturing is in the process of setting a selling price on a new product it has just developed. The following data is available from the accounting department based on a budgeted volume of 100,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $30 $35 $30 $25 Total $250,000 $100,000 Heedy Manufacturing management requests the total cost per unit be used in cost-plus pricing its products. In addition, management requests that the target price be set to provide a 30% return on investment on invested assets of $1,500,000.
Heedy Manufacturing is in the process of setting a selling price on a new product it has just developed. The following data is available from the accounting department based on a budgeted volume of 100,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $30 $35 $30 $25 Total $250,000 $100,000 Heedy Manufacturing management requests the total cost per unit be used in cost-plus pricing its products. In addition, management requests that the target price be set to provide a 30% return on investment on invested assets of $1,500,000.
Chapter1: Financial Statements And Business Decisions
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![Heedy Manufacturing is in the process of setting a selling price on a new product it has just developed. The following data is available
from the accounting department based on a budgeted volume of 100,000 units.
4
Per Unit
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses $25
Fixed selling and administrative expenses
$30
$35
$30
Total
$250,000
$100,000
Heedy Manufacturing management requests the total cost per unit be used in cost-plus pricing its products. In addition, management
requests that the target price be set to provide a 30% return on investment on invested assets of $1,500,000.
hp](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb3ccf8-64a3-4f42-90b5-c9c7edf16923%2Fb526d4a8-6741-4dd0-95e2-a344a14355cb%2Ftfm8f9r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Heedy Manufacturing is in the process of setting a selling price on a new product it has just developed. The following data is available
from the accounting department based on a budgeted volume of 100,000 units.
4
Per Unit
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses $25
Fixed selling and administrative expenses
$30
$35
$30
Total
$250,000
$100,000
Heedy Manufacturing management requests the total cost per unit be used in cost-plus pricing its products. In addition, management
requests that the target price be set to provide a 30% return on investment on invested assets of $1,500,000.
hp
![Your Answer Correct Answer
Your answer is correct.
Compute the markup percentage and target selling price that will allow Heedy Manufacturing to earn a 30% return on
investment. (Round your answers to 2 decimal places, eg 10.50.)
Markup percentage
Target selling price $
eTextbook and Media
(b)
Assume that the budgeted volume is 90,000 units and the invested assets for this product are $1,200,000 instead. Compute the
markup percentage and target selling price for Heedy Manufacturing to earn a 30% return on investment. (Round answers to 2
decimal places, eg. 10.50% or 10.50)
Markup percentage
Target selling price
$
eTextbook and Media
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Transcribed Image Text:Your Answer Correct Answer
Your answer is correct.
Compute the markup percentage and target selling price that will allow Heedy Manufacturing to earn a 30% return on
investment. (Round your answers to 2 decimal places, eg 10.50.)
Markup percentage
Target selling price $
eTextbook and Media
(b)
Assume that the budgeted volume is 90,000 units and the invested assets for this product are $1,200,000 instead. Compute the
markup percentage and target selling price for Heedy Manufacturing to earn a 30% return on investment. (Round answers to 2
decimal places, eg. 10.50% or 10.50)
Markup percentage
Target selling price
$
eTextbook and Media
Save for Later
Attempts: 2 of 2 used
Attempts: 0 of 2 used
Submit Answer
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