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  3. i eban wares is an investment center of a major co

I Eban Wares is an investment center of a major corporation. The following anticipated data...

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Accounting

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I Eban Wares is an investment center of a major corporation. The following anticipated data are for the next year of operations: Per unit Total Direct materials $14 Direct labor $22 Variable manufacturing overhead 30 Fixed manufacturing overhead $4,500,000 Variable selling and administrative expenses $20 Fixed selling and administrative expenses 2,500,000 The anticipated production and sales volume 800,000 units The company wants to earn 40% return on its unit product cost. 1. Compute the total cost per unit. (5 marks) 2. Compute the target selling price. (5 marks) 3.The corporation's minimum required rate of return on investment is 16% and the average operating assets of this division is $40,000,000. Assuming Eban Wares actual production and sales volume was 10,000 units less than budgeted volume. a. Compute return on investment (5 marks). b. Compute residual income

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