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 477,000 units. Per Unit Total
Direct materials $ 7.22
Direct labor $11.19
Variable manufacturing overhead $14.75
Fixed manufacturing overhead $3,574,060
Variable selling and administrative expenses $14.08
Fixed selling and administrative expenses $1,401,490

The company has a desired ROI of 25%. It has invested assets of $27,168,000.

a. Compute the total cost per unit
b. Desired ROI
c. Markup percentage using target cost

a. The total cost per unit is $57.66

b. The Desired ROI is $14.23

c. The Markup percentage using target cost is 25%

Explanation:

a. In order to calculate the total cost per unit we would have to make the following calculation:

total cost per unit=Direct materials+Direct labor+Variable manufacturing overhead+Fixed manufacturing overhead+Variable selling and administrative expenses+Fixed selling and administrative expenses

Fixed manufacturing overhead per unit=$3,574,060/477,000 units

Fixed manufacturing overhead per unit=$7.49

Fixed selling and administrative expenses per unit=$1,401,490/477,000 units

Fixed selling and administrative expenses per unit=$2.93

Hence, total cost per unit=$7.22+$11.19+$14.75+$7.49+$14.08+$2.93

total cost per unit=$57.66

The total cost per unit is $57.66

b. To calculate the Desired ROI we would have to make the following calculation:

Desired ROI=(desired ROI percentage*invested assets)/annual volume of units

Desired ROI=(25%*$27,168,000)/477,000 units

Desired ROI=$14.23

The Desired ROI is $14.23

c. To calculate the Markup percentage we would have to make the following calculation:

Markup percentage=Desired ROI per unit/total cost per unit

Markup percentage=$14.23/$57.66

Markup percentage=25%

The Markup percentage using target cost is 25%

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

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