Kimmel, Accounting, 7eUS Help | System AnnouncementsCALCULATORPRINTER VERSION1 BACKNEXTProblem 21-02ALovell Computer Parts Inc. is in the process of setting a selling price on anew component it has just designed and developed. The following costestimates for this new component have been provided by the accountingdepartment for a budgeted volume of 45,000 units.PerTotalUnitDirect materials$49Direct labor$22Variable manufacturing overhead$23Fixed manufacturing overhead$540,000Variable selling and administrative expenses$22Fixed selling and administrative expenses$405,000Lovell Computer Parts management requests that the total cost per unit beused in cost-plus pricing its products. On this particular product,management also directs that the target price be set to provide a 18%return on investment (ROI) on invested assets of $1,000,000.Compute the markup percentage and target selling price that will allowLovell Computer Parts to earn its desired ROI of 18% on this newcomponent. (Round markup percentage to 2 decimal places, e.g.10.50%.)Markup percentage%MacBook Kimmel, Accounting, 7eHelp | System AnnouncementsCALCULATORPRINTER VERSION1 BACKNEXTCompute the markup percentage and target selling price that will allowLovell Computer Parts to earn its desired ROI of 18% on this newcomponent. (Round markup percentage to 2 decimal places, e.g.10.50%.)Markup percentage0%Target selling priceAssuming that the volume is 36,000 units, compute the markup percentageand target selling price that will allow Lovell Computer Parts to earn itsdesired ROI of 18% on this new component. (Round answers to 2decimal places, e.g. 10.50% or 10.50.)%Markup percentageTarget selling price24Click if you would like to Show Work for thisquestion:Open ShowWorkSAVE FOR LATERSUBMIT ANSWERQuestion Attempts: 0 of 1 usedMacBook

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Description: Kimmel, Accounting, 7eUS Help | System AnnouncementsCALCULATORPRINTER VERSION1 BACKNEXTProblem 21-02ALovell Computer Parts Inc. is in the process of setting a selling price on anew component it has just designed and developed. The following costesti

Total cost includes both variable and fixed costs involved.

Business

Accounting

Lovell Computer Parts Inc. Is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 45,000 units. Per Unit Total Direct materials $49 Direct labor $22 Variable manufacturing overhead $23 Fixed manufacturing overhead $540,000 Variable selling and administrative expenses $22 Fixed selling and administrative expenses $405,000 Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 18% return on investment (ROI) on invested assets of $1,000,000.

Lovell Computer Parts Inc. Is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 45,000 units. Per Unit Total Direct materials $49 Direct labor $22 Variable manufacturing overhead $23 Fixed manufacturing overhead $540,000 Variable selling and administrative expenses $22 Fixed selling and administrative expenses $405,000 Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 18% return on investment (ROI) on invested assets of $1,000,000.

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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