User Account

All Pages

Find the markup percentage and target selling price

Assignment Help Financial Accounting
Reference no: EM132585152

Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 46,000 units.

Per Unit                                                                            Total

Direct materials                                                 $50

Direct labor                                                       $23

Variable manufacturing overhead                            $25

Fixed manufacturing overhead                          $598,000

Variable selling and administrative expenses              $18

Fixed selling and administrative expenses            $414,000

Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 23% return on investment (ROI) on invested assets of $1,000,000.

(a) New attempt is in progress. Some of the new entries may impact the last attempt grading.

Question 1: Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 23% on this new component. (Round markup percentage to 2 decimal places, e.g. 10.50%.)

Reference no: EM132585152

Questions Cloud

Undergoing intense competition : Identify an industry that is undergoing intense competition or is being featured in the business press.
Determine what is the labor quantity variance : Determine What is the labor quantity variance? A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.
Explain how strategic portfolio management : Explain how strategic portfolio management relates to project management. Explain the difference between project-based and non-project-based organizations.
What is the relationship between a bcp and a drp : No matter how well an organizations data is protected, eventually there will be a breach of security or a natural disaster. Well prepared organizations.
Find the markup percentage and target selling price : Find the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 23% on this new component.
Weighted average cost of capital : Please critically comment on the following sentence : "Weighted Average Cost of Capital (WACC) is too complicated and not useful for financial management
Company strategy-environmental factors : You prompted to further explore your company's strategy. Are they impacted by the same environmental factors?
Design the computer network for a new dental office : You are assigned a project to design the computer network for a new dental office in your neighborhood. The office will host the following equipment.
Define cryptographic hash function : Answer the following in a 2- to 3-page paper: Define cryptographic hash function (CFH). List and define the main properties of an ideal cryptographic hash.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Define problem solution objectives constraints development

Recommendations Your appendix should also contain Any brochures (scans), websites, photographs and prices you have researched to complete yourassignment.

  Analyze the impact of transaction on accounts

Douglas malone started citybnb, which is a bed and breakfast in vancouver. citybnb offeres accommodations and breakfast to travellers exploring the city.

  Determine the required return of each stock

Using the Capital Asset Pricing Model (CAPM), determine the required return of each stock. Which stocks are overvalued or undervalued in the market? Why?

  When the carrying value of the bond

A $900,000 bond was retired at 98 when the carrying value of the bond was $888,000. The entry to record the retirement would include a

  Statement of stockholders equity for the current year

Solomon Corporation’s adjusted trial balance for the year ending December 31, 2015, Prepare its income statement and statement of stockholders’ equity for the current year, and its balance sheet for the current year-end. Cash dividends were $8,000 an..

  Determine and calculate the annual corportate taxes

Determine and Calculate the Net Income, Annual Corportate Taxes and VAT (fiscal year 2019) of a Company located in Madrid, Spain based on the information

  Is the environment of accounting unaffected by socia

The environment of accounting is unaffected by social - economic- Legal conditions, restraints, and influences that vary from time to time.

  Determine the depreciation rates per mile

Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year.

  Ethical is sometimes not legal in accounting business

Describe a situation where in an action may be legal but not ethical and what may be ethical is sometimes not legal in Accounting Business.

  Accounting principles assignment

Its largest percentage of patients consists of mothers and newborns, followed by a mix of cardiovascular-related admissions.

  Illustrate what are associated with using cost

What problems are associated with using the average cost per unit as a performance measure? Illustrate what problems are associated with using the variable cost per unit as a performance measure?

  Total manufacturing overhead variance of alpha company

The management of Alpha Company has calculated the following variances. When determining the total production cost flexible budget variance, calculate the total manufacturing overhead variance of Alpha Company.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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