Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.
Per Unit Total
Direct materials $410
Direct labor $340
Variable manufacturing overhead $ 75
Fixed manufacturing overhead $1,708,000
Variable selling and administrative expenses$ 56
Fixed selling and administrative expenses $ 560,000
The company has a desired ROI of 22%. It has invested assets of $54,430,000. It anticipates production of 2,800 units per year.
1).Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
2). Compute the desired ROI per unit. (Round answer to 0 decimal places, e. g. 125.)
3). Compute the markup percentage and target selling price using absorption-cost pricing. (Round the markup percentage to 3 decimal places, e. g. 2.250% and the target selling price to 0 decimal places, e. g. 125.)
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Gibbs Corporation produces industrial robots for high-precision manufacturing. The following informa...
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