Question

Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation:

Question 7 Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation: Total Per Unit Direct materials $380 Direct labour 290 Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 56 Fixed selling and administrative expenses 78 $1,643,000 310,050 The company has a desired ROI of 25%. It has invested assets of $51,145,000. It expects to produce 2,650 units each year. v (a) Your answer is correct. Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses. 620 per unit Fixed manufacturing overhead su 117 per unit Fixed selling and administrative su SHOW SOLUTION LINK TO TEXT Attempts: 1 of 3 used (b) Your answer is correct. Calculate the desired ROI per unit. I 4825 per unit Desired ROI su

I am not sure for part C,

Thank you.

Answer 1

rate positively ..

Target selling price = per unit fixed cost + per unit variable cost + per unit ROI required
i	Asset invested =			51,145,000
ii	ROI % =			25%
iii=i*ii	ROI $=			12,786,250
iv	Number of unit =			2650
v=iii/iv	Profit required per unit			4,825
vi	Variable cost per unit			804
	380+290+78+56
vii	Fixed cost per unit =			737
	620+117
viii=vi+vii+v	Target selling price =			6,366
	Ans =			6,366