Bonita Products Desires To Set A Target Price For Its Newest Product Information For A Budgeted Volume Of 8 000 Units I 1 (26.7 KiB) Viewed 82 times
Bonita Products Desires To Set A Target Price For Its Newest Product Information For A Budgeted Volume Of 8 000 Units I 2 (15.28 KiB) Viewed 82 times
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 Direct materials $ 146 $ 96 $ 71 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.
(b) Compute the target price of the new product under variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50.) Target price $ Save for Later Attempts: 0 of 1 used Submit Answer
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