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Sandhill Doors, Inc. is in the process of setting a target selling price on...

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Accounting

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.
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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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