Please help me (В1, С2)Question 3:Zain Industries has recently patented a new product calledMaxi Drive, automobile oil for maximum engineperformance. The following annual information wasdeveloped by the company's controller for use in pricedetermination:Total CostsTotal variable production costsFixed manufacturing overheadSelling ExpensesGeneral, and administrative expenses 400,000Desired ProfitCost of assets employed500,000500,000100,000300,000100,000- Annual demand for the product is expected to be1,000,000 quarts.- On average, the company now earns a 6% return onassets (ROA).Instructions:1. Compute the projected unit cost for one quart of MaxiDrive.2. Prepare the formulas for computing the markuppercentage and the selling price for one quart using thegross margin pricing method.3. Using return on assets pricing, compute the price perunit?

Return on asset is the return earned on the amount of investment made into a project.

Question 3: Zain Industries has recently patented a new product called Maxi Drive, automobile oil for maximum engine performance. The following annual information was developed by the company's controller for use in price determination: (B1, С2) |Total Costs 500,000 500,000 100,000 Total variable production costs Fixed manufacturing overhead Selling Expenses General, and administrative expenses 400,000 Desired Profit Cost of assets employed 300,000 100,000 Annual demand for the product is expected to be 1,000,000 quarts. - On average, the company now earns a 6% return on assets (ROA). Instructions: 1. Compute the projected unit cost for one quart of Maxi Drive. 2. Prepare the formulas for computing the markup percentage and the selling price for one quart using the gross margin pricing method. 3. Using return on assets pricing, compute the price per unit?

Question 3: Zain Industries has recently patented a new product called Maxi Drive, automobile oil for maximum engine performance. The following annual information was developed by the company's controller for use in price determination: (B1, С2) |Total Costs 500,000 500,000 100,000 Total variable production costs Fixed manufacturing overhead Selling Expenses General, and administrative expenses 400,000 Desired Profit Cost of assets employed 300,000 100,000 Annual demand for the product is expected to be 1,000,000 quarts. - On average, the company now earns a 6% return on assets (ROA). Instructions: 1. Compute the projected unit cost for one quart of Maxi Drive. 2. Prepare the formulas for computing the markup percentage and the selling price for one quart using the gross margin pricing method. 3. Using return on assets pricing, compute the price per unit?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.18E

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