E9.22 (LO 2) Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation: Per Unit Total Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $380 290 72 55 b. Calculate the desired ROI per unit. c. Calculate the target selling price. $1,800,000 324,000 The company has a desired ROI of 20%. It has invested assets of $51 million. It expects to produce 3,000 units each year. Instructions a. Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.

E9.22 (LO 2) Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation: Per Unit Total Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $380 290 72 55 b. Calculate the desired ROI per unit. c. Calculate the target selling price. $1,800,000 324,000 The company has a desired ROI of 20%. It has invested assets of $51 million. It expects to produce 3,000 units each year. Instructions a. Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7CE

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