The following information is available for a product manufactured by Gardenia Corporation:
Gardenia has a desired ROI of 16%. It has invested assets of $8,250,000 and expects to produce 5,000 units per year.
Instructions
Compute each of the following:
1. Cost per unit of fixed manufacturing overhead and fixed selling and administrative expenses.
2. Desired ROI per unit.
3. Markup percentage using the absorption-cost approach.
4. Markup percentage using the variable-cost approach.
Correct Answer:
Verified
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