Schopp Corporation makes a mechanical stuffed alligator that sings the Martian n

Question

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 475,000 units. The company has a desired ROI of 23%. It has invested assets of $28,676,000. Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.50%.) Compute the desired ROI per unit. (Round answer to 2 decimal places, e.g. 10.50%.) Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.)

Explanation / Answer

Per Unit Total DM 6.84                   3,249,000 DL 10.99                   5,220,250 Variable M. Overheads 15.07                   7,158,250 Fixed M. Overheads                   3,306,000 Fixed selling and Admin exp                   1,548,500 TOTAL Cost                20,482,000 Units produced                      475,000 Total Cost per unit 43.12 ROI per unit                           13.89 (28676000*23%)/475000 Markup Percentage- Absorption 32.20% (13.89/43.12)*100 Variable cost per unit 32.9 ROI 13.89 Markup Percentage- Variable cost 42.22% (13.89/32.9*100)

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