Rita Corporation produces commercial fertilizer spreaders. T…
Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita’s anticipated annual volume of 600,000 units: Per Unit Total Direct materials $37 Direct labour 43 Variable manufacturing overhead 65 Fixed manufacturing overhead $15,000,000 Variable selling and administrative expenses 73 Fixed selling and administrative expenses $11,400,000 The company has a desired ROI of 20%. It has invested assets of $325,000,000. Instructions: Calculate each of the following: a) Total cost per unit. b) Desired ROI per unit. c) Markup percentage using total cost per unit. d) Target selling price.
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