Paige corporation makes a mechanical stuffed

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Reference no: EM131103837

E8-5 Paige Corporation makes a mechanical stuffed alligator that sings the Martian na- tional anthem. The following information is available for Paige Corporation's anticipated annual volume of 500,000 units.

	Per Unit	Total
Direct materials	$ 7
Direct labor	$ 9
Variable manufacturing overhead	$15
Fixed manufacturing overhead		$3,000,000
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 $26,000,000.

Instructions

(a) Compute the total cost per unit.

(b) Compute the desired ROI per unit.

(d) Compute the target selling price.

Reference no: EM131103837

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