Gainer corporation makes a mechanical stuffed alligator

Reference no: EM13581124

Gainer Corporation makes a mechanical stuffed alligator that sings the Mexican national anthem. The following information is available for Gainer Corporation's anticipated annual volume of 500,000 units.

Per Unit Total

Direct materials $ 8

Direct labor $ 9

Variable manufacturing overhead $15

Fixed manufacturing overhead $3,500,000

Variable selling and administrative expenses $14

Fixed selling and administrative expenses $1,500,000

The company has a desired ROI of 25%. It has invested assets of $24,080,000.

Instructions

(a) Compute the total cost per unit.

(b) Compute the desired ROI per unit.

(d) Compute the target selling price

Reference no: EM13581124

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