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
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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
$
Transcribed Image Text: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 $
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