Answer Happy

Bonita Products desires to set a target price for its newest product. Information for a budgeted volume of 8,000 units is shown below. Per Unit Total $ 146 $ 96 $ 71 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 50,000 $ 45 $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product.
(a) Compute the markup percentage under variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, e.g. 10.50%.) Markup Percentage % Save for Later Attempts:0 of 1 used Submit Answer