Answer Happy

Williams Incorporated produces a single product, a part used in
the manufacture of automobile transmissions. Known for its quality
and performance, the part is sold to luxury auto manufacturers
around the world. Because this is a quality product, Williams has
some flexibility in pricing the part. The firm calculates the price
using a variety of pricing methods and then chooses the final price
based on that information and other strategic information. A
summary of the key cost information follows. Williams expects to
manufacture and sell 59,000 parts in the coming year. While the
demand for Williams’s part has been growing in the past 2 years,
management is not only aware of the cyclical nature of the
automobile industry, but also concerned about market share and
profits during the industry’s current downturn.
Required:
1. Determine the price for the part using a markup of 37% of
full manufacturing cost.
2. Determine the price for the part using a markup of 24% of
full life-cycle cost.
3. Determine the price for the part using a desired gross margin
percentage to sales of 40%.
4. Determine the price for the part using a desired life-cycle
cost margin percentage to sales of 29%.
5. Determine the price for the part using a desired before-tax
return on investment of 12%.
6. Determine the total contribution margin and total operating
profit for each of the methods in requirements 1 through 5.
(Do not round intermediate calculations. Round your
answer to 4 decimal places.)