Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's...
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Accounting
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,900 units.
| Per Unit | Total | |||||
| Direct materials | $18 | |||||
| Direct labor | $8 | |||||
| Variable manufacturing overhead | $14 | |||||
| Fixed manufacturing overhead | $414,400 | |||||
| Variable selling and administrative expenses | $7 | |||||
| Fixed selling and administrative expenses | $51,800 | |||||
The company uses a 40% markup percentage on total cost.
1. Compute Total Cost Per Unit
2.Compute desired ROI per unit
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