Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $15000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 5000 pairs What is the target selling price per pair of shoes? $113 $169 $142 $158

Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $15000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 5000 pairs What is the target selling price per pair of shoes? $113 $169 $142 $158

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Question

Swifty Corporation has gathered the following information concerning one model of shoe:

Variable manufacturing costs	$40000
Variable selling and administrative costs	$15000
Fixed manufacturing costs	$160000
Fixed selling and administrative costs	$120000
Investment	$1700000
ROI	30%
Planned production and sales	5000 pairs

What is the target selling price per pair of shoes?

$113

$169

$142

$158

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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