Josh Corporation produces industrial robots for high-precision manufacturing. The following information is given for the Corporation.
- Per Unit Total
- Direct materials -$380
- Direct labor -$290
- Variable manufacturing overhead- $72
- Fixed manufacturing overhead ------------- $1,800,000
- Variable selling and administrative expenses -$55
- Fixed selling and administrative expenses----------- $327,000
The company has a desired ROI of 20%. It has invested assets of $49,600,000. It anticipates production of 3,000 units per year.
1.Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses. (Round answers to 0 decimal places.)
2.Compute the desired ROI per unit. (Round answers to 0 decimal places.)
3.Compute the target selling price.