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Pharoah Corporation produces industrial robots for high-precision manufacturing. The following information is given for Pharoah Corporation: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Per Unit $390 290 Markup percentage 80 Target selling price 50 Total The company has a desired ROI of 30%. It has invested assets of $51,150,000. It expects to produce 3,100 units each year. $1,984,000 341,000 Calculate the markup percentage and target selling price using absorption-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to O decimal places, e.g. 5,250.)

Pharoah Corporation produces industrial robots for high-precision manufacturing. The following information is given for Pharoah Corporation: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Per Unit $390 290 Markup percentage 80 Target selling price 50 Total The company has a desired ROI of 30%. It has invested assets of $51,150,000. It expects to produce 3,100 units each year. $1,984,000 341,000 Calculate the markup percentage and target selling price using absorption-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to O decimal places, e.g. 5,250.)

FINANCIAL ACCOUNTING
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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Current Attempt in Progress Pharoah Corporation produces industrial robots for high-precision manufacturing. The following information is given for Pharoah Corporation: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Per Unit $390 Markup percentage 290 Target selling price 80 50 The company has a desired ROI of 30%. It has invested assets of $51,150,000. It expects to produce 3,100 units each year. Total $1,984,000 Calculate the markup percentage and target selling price using absorption-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to O decimal places, e.g. 5,250.) %6 341,000
Transcribed Image Text:Current Attempt in Progress Pharoah Corporation produces industrial robots for high-precision manufacturing. The following information is given for Pharoah Corporation: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Per Unit $390 Markup percentage 290 Target selling price 80 50 The company has a desired ROI of 30%. It has invested assets of $51,150,000. It expects to produce 3,100 units each year. Total $1,984,000 Calculate the markup percentage and target selling price using absorption-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to O decimal places, e.g. 5,250.) %6 341,000
(b) Calculate the markup percentage and target selling price using variable-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to 0 decimal places, e.g. 5,250.)
Transcribed Image Text:(b) Calculate the markup percentage and target selling price using variable-cost pricing. (Round markup percentage to 3 decimal places, e.g. 15.250% and target selling price to 0 decimal places, e.g. 5,250.)
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