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Managerial Accounting Travis Corporations

Compute ROI per Unit
1. Travis corporation produces high- performance rotors. It expects to produce $50,000 rotors in the coming year. It has invested $ 1,000,000 to produce rotors. The company has a required return on investment of 18% what is its ROI per unit?

Compute markup percentage
2. Shandling corporation produces microwave units. The following per unit cost information is available: direct material $36; direct labor $24; variable manufacturing overhead $18; fixed manufacturing overhead $42; variable selling and administrative expenses $14; and fixed selling and administrative expenses $28. Its desired ROI per unit is $30. Compute its markup percentage using a total-cost approach.

Use cost-plus pricing to determine selling price
3. Gruner corporation produces snowboards. The following per unit cost information is available: direct material $12; direct labor $8; variable manufacturing overhead $6; fixed manufacturing overhead $14; variable selling and administrative expenses $4; and fixed selling and administrative expenses $12. Using a 32% markup percentage on total per unit cost, compute the target selling price.?
Compute ROI and markup percentage

4. During the current year Bierko corporation expects 10.000 units and has budgeted the following : net income $ 300,000; variable costs $ 1,100,000; and fixed costs $100,000. It has invested assets of $ 1,500,000. The company's budgeted ROI was 20%. What was its budgeted markup percentage using a full- cost approach?

Solution Summary

The expert examines the managerial accounting for Travis Corporations.

$2.19