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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