Compute the desired ROI per unit

Assignment Help Accounting Basics
Reference no: EM133073562

Question - ABC Corporation makes a mechanical device for material handling. The following information is available for the company's anticipated annual volume of 600,000 units.

Direct Materials $8 Direct Labour $15 Variable MOH $18 Fixed MOH $3,500,000 $1,500,000

The company has a desired ROI of 30%. It has invested assets of $30,000,000

Required -

1. Compute the total cost per unit.

2. Compute the desired ROI per unit.

3. Compute the target selling price.

4. Compute the mark-up percentage using variable cost per unit.

Reference no: EM133073562

Questions Cloud

Assignment on valuing bonds : Tesla raised money to finance an expansion of their factory in Nevada, so they currently have 2 bonds outstanding. Bond 1 has a face value of $30,000 and mature
What about future financial statements : Under Armour Inc. reported Accounts receivable, net, of $96.0 million in 2019, What about future financial statements
Components of classroom management system : What are the necessary components of a classroom management system? What is the purpose of each component?
Describe the terminal value of the portfolio : 1. A corporate treasurer is designing a hedging program involving foreign currency options. What are the pros and cons of using (a) NASDAQ OMX and (b) the over-
Compute the desired ROI per unit : The company has a desired ROI of 30%. It has invested assets of $30,000,000. Compute the desired ROI per unit
Calculate the cost of equity using the sml method : 1. Floyd Industries stock has a beta of 1.2. The company just paid a dividend of $1.01, and the dividends are expected to grow at 3 %.
What challenges do field trips present : What are the advantages and disadvantages of field trips? What challenges do field trips present, and how would you deal with them?
What is the jan 2nd return on a price-weighted index : 1. At market close on Jan 1st, stock A had 100M shares outstanding and traded at $90 a share. On the following day, the stock closed at $95.
What are the ethical issues faced by Carley and Christina : Christina believes this will help their cash flow because they will have the cash on hand to pay the HST. What are ethical issues faced by Carley and Christina

Reviews

Write a Review

Accounting Basics Questions & Answers

  What was the carrying amount of the van

Record a sale in journal entry - The depreciation method used wasstraight-line On January 1, 2011, What was the carrying amount of the van at the date of sale

  Vango inc sells part number 86z to auto parts stores around

1.vango inc. sells part number 86z to auto parts stores around the world. information about part number 86z is

  What is the equivalent annual saving from the purchase

The opportunity cost of capital is 11%, and the firm's tax rate is 21%. What is the equivalent annual saving from the purchase

  Analyzing balance sheet and income statement of the company

Analyze the balance sheet and income statement of the company that you have selected, and outline your method for evidence collection which should include.

  How is the value of a bond determined

How is the value of a bond determined? What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required rate of return is 10%

  What is the total of dells operating lease commitments

Referring also to Dell's balance sheet, determine the effect that capitalizing the leases would have on the company's debt-equity ratio.

  Compute the amount of depreciation expense

Compute the amount of depreciation expense for the year ended December 31, 2014, using the straight-line method of depreciation.

  Determine changes to the balance sheet and income statement

Time cards are being entered into the accounting system for four employees. The costs for Employee 1 are to be billed to job cost code 302.01.01100L.

  Sam financial records and fair values

Father, Inc., buys 80 percent of the outstanding common stock of Sam Corporation on January 1, 2011, for $680,000 cash. At the acquisition date, Sam's total fair value was assessed at $850,000 although Sam's book value was only $600,000. Also, sev..

  Calculate cullumber compensation expense

The SARs are exercised on January 1, 2022. Calculate Cullumber's compensation expense for 2020 and 2021 assuming it follows ASPE

  What is the partnership agreed capital

One-third interest in the firm upon her investment of an amount equal to the agreed capital as a new partner. What is the partnership's agreed capital?

  Reproduce the retained earnings account for the year

The January 1 balance in Retained Earnings was $1,170,000. Prepare a retained earnings statement for the year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd