1.
Markup % (6/129)*100 | 4.65% |
Desired selling price (129 + 6) | $ 135.00 |
Working:
Variable cost per unit | |||
Per Unit $ | |||
Direct Material | 48 | ||
Direct Labor | 25 | ||
Variable Manufacturing Overhead | 22 | ||
Variable Selling and Administrative expenses | 15 | ||
Total Variable cost | 110 | ||
Fixed Cost per unit | Total | units | Cost per unit |
Fixed Manufacturing Overhead | 700000 | 50000 | 14 |
Fixed Selling and Administrative expenses | 250000 | 50000 | 5 |
Total fixed cost | 950000 | 19 | |
Total cost per unit | 129 | ||
Desired ROI (1,000,000*30%) | 300000 | ||
Desired ROI per unit (300000/50,000) | 6 | ||
Desired selling price (129 + 6) | $ 135.00 | ||
Markup % (6/129)*100 | 4.65% |
2.
Markup % (7.5 /133.75)*100 | 5.61% |
Desired selling price (133.75 + 7.5) | $ 141.25 |
Working:
Variable cost per unit | |||
Per Unit $ | |||
Direct Material | 48 | ||
Direct Labor | 25 | ||
Variable Manufacturing Overhead | 22 | ||
Variable Selling and Administrative expenses | 15 | ||
Total Variable cost | 110 | ||
Fixed Cost per unit | Total | units | Cost per unit |
Fixed Manufacturing Overhead | 700000 | 40000 | 17.5 |
Fixed Selling and Administrative expenses | 250000 | 40000 | 6.25 |
Total fixed cost | 950000 | 23.75 | |
Total cost per unit (110+23.75) | 133.75 | ||
Desired ROI (1,000,000*30%) | 300000 | ||
Desired ROI per unit (300000/40,000) | 7.5 | ||
Desired selling price (133.75 + 7.5) | $ 141.25 | ||
Markup % (7.5 /133.75)*100 | 5.61% |
Problem 21-02A Lovell Computer Parts Inc. is in the process of setting a selling price on...
Problem 21-02A Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 48,000 units. Total Per Unit $53 $30 $16 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $720,000 $14 $432,000 Lovell Computer Parts management...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 53,000 units Per Unit Total Direct materials $52 Direct labor $22 Variable manufacturing overhead $18 $689,000 Fixed manufacturing overhead Variable selling and administrative expenses $16 Fixed selling and administrative expenses $424,000 Lovell Computer Parts management requests that...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 45,000 units. Per Unit Total Direct materials $51 Direct labor $27 Variable manufacturing overhead $24 Fixed manufacturing overhead $540,000 Variable selling and administrative expenses $17 Fixed selling and administrative expenses $405,000 Lovell Computer Parts management requests that...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 48,000 units. Total Per Unit $53 $30 $16 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $720,000 $14 $432,000 Lovell Computer Parts management requests that...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 45,000 units. Per Total Unit $51 $30 $20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $495,000 $18 $225,000 Lovell Computer Parts management requests that...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 50,000 units. Per Unit Total Direct materials $48 Direct labor $21 Variable manufacturing overhead $17 Fixed manufacturing overhead $750,000 Variable selling and administrative expenses $22 Fixed selling and administrative expenses $350,000 Lovell Computer Parts management requests that...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 50,000 units. Total Per Unit $45 $29 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $750,000 $13 $400,000 Lovell Computer Parts management requests that the...
Problem 8-2A (Video) Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 54,000 units. Per Unit Total Direct materials $55 Direct labor $29 Variable manufacturing overhead $25 Fixed manufacturing overhead $648,000 Variable selling and administrative expenses $13 Fixed selling and administrative expenses $378,000 Lovell Computer Parts...
Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 50,000 units. Per Unit Total Direct materials $52 Direct labor $22 Variable manufacturing overhead $18 Fixed manufacturing overhead $650,000 Variable selling and administrative expenses $16 Fixed selling and administrative expenses $400,000 Lovell Computer Parts management requests that...
Problem 8-2A (Video) Lovell Computer Parts Inc. Is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 45,000 units Per Unit Total Direct materials $49 Direct labor $22 Variable manufacturing averhead $23 Fixed manufacturing averhead $540,000 Varlable selling and administrative expenses $22 Fixed selling and administrative expenses $405,000 Lovell Computer Parts...