Question Details

Lafluer Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product.
 	 	Per Unit	Total
 	Direct materials	$20	 	 	 
 	Direct labor	$42	 	 	 
 	Variable manufacturing overhead	$10	 	 	 
 	Fixed manufacturing overhead	 	$1,440,000 		 
 	Variable selling and administrative expenses	$5	 	 	 
 	Fixed selling and administrative expenses	 	$1,040,000 		
These costs are based on a budgeted volume of 80,000 units produced and sold each year. Lafluer uses cost-plus pricing methods to set its target selling price. The markup on total unit cost is 30%.
Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14 - M16.
Compute the desired ROI per unit for M14-M16. (Round answer to 2 decimal places, e.g. 10.50.)
Compute the target selling price for M14-M16.
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. (Round answers to 2 decimal places, e.g. 10.50.)
 

 
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