(Answered) Question - bosworth electronics inc is setting a selling

Accounting

Question - Bosworth Electronics Inc. is setting a selling price on a new CDL component it has just developed. The accounting department has provided the following cost estimates for this component for a budgeted volume of 100,000 units:

Per Unit Total

Direct Materials: $30

Direct Labour $20

Variable manufacturing overhead $17

Fixed Manufacturing overhead $2,500,000

Variable selling and administration 8

Fixed selling and administration 500,000

Bosworth's management uses cost-plus pricing to set its selling price. Management also requires the target price to be set to provide a 30% return on investment on invested assets of $3 million.

Instructions -

(a) Calculate the markup percentage and target selling price that will allow Bosworth Electronics to earn its desired ROI of 30% on this new CDL component.

(b) Assuming that the volume is 80,000 units, calculate the markup percentage and target selling price that will allow Bosworth Electronics to earn its desired ROI of 30%.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92726771
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - a company is considering two mutually exclusive

Question - A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $100, followed by cash flows of $95, $20, and $5. Project B requires an initial investment of $100 ...

Question - lucky treasures enterprises issued 9 8-year

Question - Lucky Treasures Enterprises issued 9%, 8-year, $2,000,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2013 and are issued on that date. The discount ra ...

Question - what are the steps to finding the current stock

Question - What are the steps to finding the current stock price if dividend is $.6 at the end of the year, rate of return is 10.5% and growth rate is 7.7%?

Question - texas roadhouse opened a new restaurant in

Question - Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,900. The cards are redeemable for meals within one ...

Question each part should be supported with extensive text

Question: Each part should be supported with extensive text explaining and supporting the details of your plan. Part Two - List of financial goals (short, medium, and long-term) ? ?You should have a minimum of 3 for each ...

Question -what is financial statement fraudhow is it

Question - What is financial statement fraud? How is it different from embezzlement and misappropriation? Why might senior management overstate or understate business performance?

Scenario - terri has an annual contract with jackson

SCENARIO - Terri has an annual contract with Jackson Mortgage Brokers to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Terri spends, on average, 20 hours per we ...

Accounting question - dozier company produced and sold 1000

Accounting Question - Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $72,000 Direct labor $36,500 Varia ...

Question - mary also provided you with third quarter

Question - Mary also provided you with third quarter monthly expense data to assist in constructing your budget. The next table presents that information: Monthly Expense Item Amount Administration $2,500 General 6% of s ...

Auditing assignment -assessment taskthe aim of the group

Auditing Assignment - Assessment Task: The aim of the group assignment is to test students' ability to integrate skills learnt in Auditing and Assurance Services to analyse a real company from the auditor's perspective a ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert