Beans Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Stahl Corporation's anticipated annual volume of 500,000 units.
- Per Unit Total
- Direct materials $7
- Direct labor $9
- Variable manufacturing overhead $15
- Fixed manufacturing overhead $3,300,000
- Variable selling and administrative expenses $14
- Fixed selling and administrative expenses $1,500,000
The company has a desired ROI of 25%. It has invested assets of $24,000,000.
1. Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.)
2.Compute the desired ROI per unit. (Round answer to 2 decimal places, e.g. 10.50.)
3.Compute the markup percentage using total cost per unit. (Round answer to 2 decimal places, e.g. 10.50. Use the rounded amounts from the previous questions when calculating the answer for this question.)
4.Compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50. Use the rounded amounts from the previous questions when calculating the answer for this question.)