Please help me i will give good rating U-Phone Company is in...
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Please help me i will give good rating
U-Phone Company is in the process of setting a target price on its newly designed U-phone 14 Pro Max. Cost data relating to the handphone at a budgeted volume of 40,000 units are as follow: Per Unit Total Direct materials RM1200 Direct labor RM500 Variable manufacturing overhead RM230 Fixed manufacturing overhead RM2400,000 Variable selling and administrative expenses RM120 Fixed selling and administrative expenses RM800,000 U-Phone Company uses the cost-plus pricing method to ensure that the sales of this phone provide the company with a 40% return on investments. A total of RM118,400,000 in assets is committed to the production of this new U-Phone. Required 1) Compute the markup percentage under absorption cost pricing that will allow U- Phone Company to realise its desired ROI. 2) Compute the target price of the U-Phone 14 Pro Max under absorption-cost pricing, 3) Compute the markup percentage under variable cost pricing that will allow U- Phone Company to realise its desired ROI. Compute the target price of the U-Phone 14 Pro Max under variable-cost pricing
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