National Corporation needs to set a target price for its newly
designed product M14–M16. The following data relate to this new
product.
Per Unit | Total | |||||
---|---|---|---|---|---|---|
Direct materials | $30 | |||||
Direct labor | $44 | |||||
Variable manufacturing overhead | $11 | |||||
Fixed manufacturing overhead | $1,264,000 | |||||
Variable selling and administrative expenses | $ 5 | |||||
Fixed selling and administrative expenses | $ 1,106,000 |
These costs are based on a budgeted volume of 79,000 units produced
and sold each year. National uses cost-plus pricing methods to set
its target selling price. The markup percentage on total unit cost
is 40%.
Compute the total variable cost per unit, total fixed cost per
unit, and total cost per unit for M14–M16.
Variable cost per unit | $enter a dollar amount | ||
---|---|---|---|
Fixed cost per unit | enter a dollar amount | ||
Total cost per unit |
$enter a total of the two previous amounts |
Compute the desired ROI per unit for M14–M16.
Desired ROI | $enter the desired ROI per unit in dollars | per unit |
Compute the target selling price for M14–M16.
Target selling price per unit | $enter the target selling price per unit in dollars |
Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 59,250 M14–M16s are produced and sold during the year.
Variable cost per unit | $enter a dollar amount | ||
---|---|---|---|
Fixed cost per unit | enter a dollar amount | ||
Total cost per unit | $enter a total of the two previous amounts |
Variable cost per unit = Direct material + Direct labor + Variable manufacturing overhead + Variable selling and admin expense
= 30+44+11+5
= $90 per unit
Fixed cost per unit = Total cost/Number of units
= (1,264,000+1,106,000)/79000
= $30 per unit
Total cost per unit = 90+30 = $120 per unit
Desired ROI = 120*40% = $48 per unit
Target Selling price = 120+48 = $168 per unit
When 59,250 units are sold:
Variable cost per unit = $90
Fixed cost per unit = (1,264,000+1,106,000)/59,250 = $40 per unit
Total cost per unit = $130 per unit
National Corporation needs to set a target price for its newly designed product M14–M16. The following...
National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product. Per Unit Total Direct materials $30 Direct labor $44 Variable manufacturing overhead $11 Fixed manufacturing overhead $1,264,000 Variable selling and administrative expenses $ 5 Fixed selling and administrative expenses $ 1,106,000 These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price....
National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product. Per Unit Total Direct materials $23 Direct labor $38 Variable manufacturing overhead $12 Fixed manufacturing overhead $1,343,000 Variable selling and administrative expenses $ 7 Fixed selling and administrative expenses $ 1,027,000 These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price....
National Corporation needs to set a target price for its newly
designed product M14–M16. The following data relate to this new
product.
Per Unit
Total
Direct materials
$26
Direct labor
$44
Variable manufacturing overhead
$15
Fixed manufacturing overhead
$1,377,000
Variable selling and administrative expenses
$ 5
Fixed selling and administrative expenses
$ 1,053,000
These costs are based on a budgeted volume of 81,000 units produced
and sold each year. National uses cost-plus pricing methods to set
its target selling price....
National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Unit Total Direct materials $26 Direct labor Variable manufacturing overhead Fixed manufacturing overhead $1,377,000 Variable selling and administrative expenses $5 Fixed selling and administrative expenses $ 1,053,000 These costs are based on a budgeted volume of 81,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage...
National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Total Unit Direct materials $21 Direct labor $46 Variable manufacturing overhead $15 Fixed manufacturing overhead $1,200,000 Variable selling and administrative expenses $8 Fixed selling and administrative expenses $ 1,200,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The...
CALCULATOR PRINTER аас National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Unit 527 538 $11 $1,440,000 dy $4 Fixed selling and administrative expenses 5960,000 These costs are based on a budgeted volume of 80,000 units produced and sold each year, National uses cost plus pricing methods to set its...
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Question 07 Sheen Co. manufactures a standard cabinet for a Blu-ray player. The variable cost per unit is $16. The fixed cost per unit is $9. The desired ROI per unit is $6. Compute the markup percentage on total unit cost and the target selling price for the cabinet. Markup percentage on total unit cost Target selling price National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product....
Chapter 08 Homework Per Unit Total Direct materials $20 Direct labor $39 Variable manufacturing overhead Fixed manufacturing overhead $1,264,000 Variable selling and administrative expenses $6 Fixed selling and administrative expenses $ 1,106,000 These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost.plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%. Compute the total variable cost per unit, total fixed cost per unit,...
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