P Carla Vista Corporation produces commercial fertilizer spreaders. The following information is available for Carla Vista's anticipated annual volume of 400,000 units. Per Unit Total Direct materials Direct labor $32 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $17,200,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 13,200,000 The company has a desired ROI of 20%. It's investment in assets is $128,000,000. Compute total cost per unit. Total cost per unit Compute desired ROI per unit. Desired ROI per unit $ Compute markup percentage using total cost per unit Mark-up percentage on the total cost per unit Compute target selling price. Target price per unit $

P Carla Vista Corporation produces commercial fertilizer spreaders. The following information is available for Carla Vista's anticipated annual volume of 400,000 units. Per Unit Total Direct materials Direct labor $32 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $17,200,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 13,200,000 The company has a desired ROI of 20%. It's investment in assets is $128,000,000. Compute total cost per unit. Total cost per unit Compute desired ROI per unit. Desired ROI per unit $ Compute markup percentage using total cost per unit Mark-up percentage on the total cost per unit Compute target selling price. Target price per unit $

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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Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production OCosts: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials... 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20,000 Total $365.000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and…
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