Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 544,000 units.
Per Unit Total
Direct materials $6.87
Direct labor $10.77
Variable manufacturing overhead $15.00
Fixed manufacturing overhead $3,318,400
Variable selling and administrative expenses $14.04
Fixed selling and administrative expenses $1,626,560
The company has a desired ROI of 23%. It has invested assets of $27,351,000.
Required:
a. Compute the total cost per unit
b. Desired ROI
c. Markup percentage using target cost
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Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The...
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