Problem
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 492,000 units. Per Unit Total Direct materials $ 6.86 Direct labor $11.00 Variable manufacturing overhead $14.75 Fixed manufacturing overhead $3,011,040 Variable selling and administrative expenses $13.77 Fixed selling and administrative expenses $1,254,600 The company has a desired ROI of 25%. It has invested assets of $27,554,000.
Compute the total cost per unit.
Compute the desired ROI per unit.
Using absorption-cost pricing, compute the markup percentage.
Using variable-cost pricing, compute the markup percentage.