Exercise 22-4 Kaspar Corporation makes a commercial-grade cooking griddle. The f

Question

Exercise 22-4 Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 29,300 units. Per Unit $23 $5 $12 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 3 $322,300 $7 $146,500 The company uses a 44% markup percentage on total cost. Compute the total cost per unit. Total cost per unit s LINK TO TEXT

Explanation / Answer

Direct Material 23 Direct labor 5 Variable Manufacturing Overhead 12 Variable Selling and administrative Cost 7 Total Variable Costs 47 Fixed Manufacturing cost 322300 Fixed Selling & administrative cost 146500 Total Fixed Costs 468800 Number of Units 29300 Fixed cost per unit (468800/29300) 16 Variable Cost per unit 47 Fixed Cost per unit 16 Total Cost per unit (1) 63 Desired ROI 44% 27.72 Target Selling Price (2) 90.72

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