Sandhill Doors, Inc. is in the process of setting a target selling price on...
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Sandhill Doors, Inc. is in the process of setting a target selling price on its newly designed patio door. Cost data relating to the door at a budgeted volume of 5,000 units is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $120 196 104 40 Total $900,000 450,000 Sandhill uses cost-plus pricing that provides it with a 25% ROI on its patio door line. A total of $4,800,000 in assets is committed to production of the new door.
Sandhill Doors. Inc, is in the process of settinga target selling price on its newly designed patio door, Cost data relating to the door at a budgeted volume of 5,000 units is as follows: Sandhill uses cost-plus pricing that provides it with a 25% ROl on its patio door line. A total of $4,800,000 in assets is committed to production of the new door. Compute each of the following under the absorption-cost approachs (Round onswers to 0 decimal places, es 5,275.) Markup percentage needed to provide the desired ROI Target selling price of the patio door
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