Business, 25.04.2020 00:43 angel2939

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 48,000 units. Per Unit Total Direct materials $47 Direct labor $21 Variable manufacturing overhead $18 Fixed manufacturing overhead $624,000 Variable selling and administrative expenses $15 Fixed selling and administrative expenses $240,000 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 24% return on investment (ROI) on invested assets of $1,000,000. Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 24% on this new component

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Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has ju...