rane Corporation produces industrial robots for high-precision manufacturing. The following information is given for Crane orporation: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $400 300 a) 70 40 Total $1,764,000 308,000 he company has a desired ROI of 20%. It has invested assets of $51,800,000. It expects to produce 2,800 units each year. 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.)
rane Corporation produces industrial robots for high-precision manufacturing. The following information is given for Crane orporation: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $400 300 a) 70 40 Total $1,764,000 308,000 he company has a desired ROI of 20%. It has invested assets of $51,800,000. It expects to produce 2,800 units each year. 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crane Corporation produces industrial robots for high-precision manufacturing. The following information is given for Crane
Corporation:
Direct materials
Direct labour
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a)
Per Unit
$400
300
Markup percentage
70
Target selling price $
40
The company has a desired ROI of 20%. It has invested assets of $51,800,000. It expects to produce 2,800 units each year.
Total
$1,764,000
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.)
%
308,000
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