Compute the total variable cost per unit

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Reference no: EM131195729

Dewitt Corporation needs to set a target price for its newly designed product M14- M16. The following data relate to this new product.

Direct materials	Per Unit $20	Total
Direct labor	$40
Variable manufacturing overhead	$10
Fixed manufacturing overhead		$1,440,000
Variable selling and administrative expenses	$ 5
Fixed selling and administrative expenses		$ 960,000

These costs are based on a budgeted volume of 80,000 units produced and sold each year. Dewitt uses cost-plus pricing methods to set its target selling price. The markup percent- age on total unit cost is 30%.

Instructions
(a) Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16.

(b) Compute the desired ROI per unit for M14-M16.

(d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14-M16s are sold during the year.

Attachment:- Problem Excel file.rar

Reference no: EM131195729

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