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Vaughn Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this
Posted: Sun Jul 03, 2022 1:30 pm
by answerhappygod

- Vaughn Corporation Needs To Set A Target Price For Its Newly Designed Product M14 M16 The Following Data Relate To This 1 (100.91 KiB) Viewed 10 times
Vaughn Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Variable cost per unit Fixed cost per unit Total cost per unit Per Unit $ $24 $39 $13 These costs are based on a budgeted volume of 80,000 units produced and sold each year. Vaughn uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 50%. $ $4 Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16. Total $1,520,000 $ 880,000
Compute the desired ROI per unit for M14-M16. Desired ROI $ eTextbook and Media Compute the target selling price for M14-M16. Target selling price per unit $ eTextbook and Media Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14-M16s are produced and sold during the year. Variable cost per unit Fixed cost per unit Total cost per unit $ per unit $