1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
topjm [15]
3 years ago
9

Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corp

oration.
Per Unit Total
Direct materials $410
Direct labor $340
Variable manufacturing overhead $ 75
Fixed manufacturing overhead $1,708,000
Variable selling and administrative expenses$ 56
Fixed selling and administrative expenses $ 560,000
The company has a desired ROI of 22%. It has invested assets of $54,430,000. It anticipates production of 2,800 units per year.
1).Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
2). Compute the desired ROI per unit. (Round answer to 0 decimal places, e.g. 125.)
3). Compute the markup percentage and target selling price using absorption-cost pricing. (Round the markup percentage to 3 decimal places, e.g. 2.250% and the target selling price to 0 decimal places, e.g. 125.)
Business
1 answer:
nordsb [41]3 years ago
8 0

Answer:

Gibbs Corporation

1) Fixed cost per unit

= $810

2) ROI per unit

= $4,277

3) Markup percentage = Total cost per unit

= 252-927%

3b) Target selling price, using absorption costing

= Total cost per unit plus Markup

= $5,960

Explanation:

a) Data and Calculations:

                                                                        Per Unit         Total

Direct materials                                                  $410

Direct labor                                                        $340

Variable manufacturing overhead                    $ 75

Fixed manufacturing overhead                                     $1,708,000

Variable selling and administrative expenses $ 56

Fixed selling and administrative expenses                  $ 560,000

Total variable and fixed costs                          $881   $2,268,000

ROI = 22% = $11,974,600 ($54,430,000 * 22%)

Invested assets = $54,430,000

Estimated annual production units = 2,800

1) Fixed cost per unit = $810 ($2,268,000/2,800)

2) ROI per unit = $4,277 ($11,974,600/2,800)

3) Markup percentage = Total cost per unit = $4,277/$1,691 * 100 = 252.927%

3b) Target selling price, using absorption costing

= Total cost per unit plus Markup = $5,960 ($1,691 + $4,277)

You might be interested in
Xugo hit tht new rank ;0<br> good job bby
Ne4ueva [31]

Hello!

Um, Okay...

Good Job, for you bby hit a new rank...

Have a great day!

#LearnWithBrainly

Answer:

- TanakaBro

Plus, here is a anime image that might make your day happy. . .

8 0
2 years ago
A coal mine cost $ 1 comma 001 comma 000and is estimated to hold 57 comma 000tons of coal. There is no residual value. During th
lorasvet [3.4K]

Answer:

Depletion expenses for the first year is $210736.840

Explanation:

Depletion expenses= (Cost of coal mine - residual value) / Total tons of coal * tons extracted

=(1,001,000 - $0) / 57,000 tons * 12,000 tons

=$210736.8421

=$210736.840

6 0
2 years ago
Stephanie Archer has been saving her money to buy a BMW convertible. Archer has spent hours on the BMW Web site choosing the ext
valentinak56 [21]

Archer has been using BMW's marketing Web site. This is a <u>true</u> statement.

<u>Explanation</u>:

A website is a collection of web pages that provides content related to the search. Many businesses have separate website for featuring and selling their product.

In the above scenario, Stephanie was surfing marketing website of the BMW Company. She wishes to purchase a BMW convertible car. So she was saving money to purchase it. Stephanie spent many hours on the BMW website to study about the various options and models available in the car. She was also choosing the interior and exterior colors of the car.

6 0
3 years ago
The following are budgeted data:Sales (units ) Production (units)April 15,000 18,000May 20,000 19,000June 18,000 16,000Two pound
zmey [24]

Answer:

Total= 36,800 pounds

Explanation:

Giving the following information:

Sales (units ) - Production (units):

May: 20,000 - 19,000

June: 18,000 - 16,000

Two pounds of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs.

Purchases for May= production for the month + desired ending inventory - beginning inventory

Production= 19,000*2 pounds= 38,000 pounds

Desired ending inventory= (16,000*2)*0.2= 6,400 pounds

Beginning inventory= (38,000*0.2)= (7,600)

Total= 36,800 pounds

3 0
3 years ago
If the annual net income from a commercial property is $22,000, and the capitalization rate is 8%, what is the value of the prop
Evgesh-ka [11]

Answer: $275,000

Explanation:

Given that,

Annual net income = $22,000

Capitalization rate = 8%

Value of the property = ?

Capitalization rate = \frac{Net\ operating\ income}{Current\ property\ value}

                        8% = \frac{22,000}{Current\ property\ value}

Value of the property = \frac{22,000\times100}{8}

                                    = $275,000

8 0
3 years ago
Other questions:
  • A firm has current assets of $36,000, cash of $5,000, current liabilities of $20,000, total assets of $80,000 and total liabilit
    10·1 answer
  • Consider a 5-step process for the National Corporation that includes cutting, drilling, stamping, welding, and painting. The cut
    15·1 answer
  • How many employees does a walmart have at one specific location?
    14·1 answer
  • Emily Boyce, a project manager at an insurance firm, regularly satisfices while making decisions. She often comes across complic
    7·1 answer
  • Read the following email,which Jim sent to his team. Then choose the answer below that best explains what is wrong with the emai
    10·1 answer
  • Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 9 pounds of direct materials at a cost of $3
    15·1 answer
  • Define accounting?Explain the accounting concepts which guide the accountant at the recording stage?
    13·1 answer
  • Milford Corporation has in stock 16,100 kilograms of material R that it bought five years ago for $5.75 per kilogram. This raw m
    11·1 answer
  • Which of the following mortgages would you prefer to hold if you were a lender and you expected inflation of uncertain magnitude
    10·1 answer
  • the yellow company has a current ratio of 2.65 . The acid test ratio is 2.01 . The current liabilities of the are company $45,00
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!