Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 8, Problem 8.7E
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
| Per Unit | Total | |
| Direct materials | $380 | |
| Direct labor | $290 | |
| Variable manufacturing |
$ 72 | |
| Fixed manufacturing overhead | $1,500,000 | |
| Variable selling and administrative expenses | $ 55 | |
| Fixed selling and administrative expenses | $ 324,000 |
The company has a desired
Instructions
(a) Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
(b) Compute the desired ROI per unit. (Round to the nearest dollar.)
(c) Compute the target selling price.
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Required:Do not enter dollar signs or commas in the input boxes.Round all answers to 2 decimal places.a) Using the cost plus pricing method, calculate the markup percentage.Full Cost: $Answer
Markup Percentage: Answer %b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a).…
Chapter 8 Solutions
Managerial Accounting: Tools for Business Decision Making
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