'Investment and Selling Price Essay\r'

'Turnhilm, Inc. is considering adding a small voltaic mower to its harvest line. Management believes that in stray to be competitive, the mower cannot be priced above $139. The fraternity take ins a minimum return of 25% on its coronations. Launching the freshly product would require an enthronisation of $8,000,000. Sales are expected to be 40,000 building blocks of the mower per year.\r\nRequired: Compute the target hail of a mower. 57. The management of Hettler Corporation would like to set the marketing price on a new product using the compactness costing approach to indeterminate pricing. The company’s accounting department has supplied the sideline estimates for the new product: Management plans to produce and interchange 4,000 units of the new product annually. The new product would require an investing of $643,000 and has a required return on investment of 20%. Required: a. discipline the unit product cost for the new product. b.\r\nDetermine the mark up helping on intentness cost for the new product. c. Determine the target merchandising price for the new product using the absorption costing approach. 58. Bourret Corporation is introducing a new product whose direct materials cost is $42 per unit, direct labor cost is $16 per unit, shifting manufacturing strike is $9 per unit, and variable marketing and administrative expense is $3 per unit. The annual fixed manufacturing overhead associated with the product is $84,000 and its annual fixed selling and administrative expense is $16,000.\r\nManagement plans to produce and sell 4,000 units of the new product annually. The new product would require an investment of $1,022,400 and has a required return on investment of 10%. Management would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. Required: a. Determine the unit product cost for the new product. b. Determine the markup percentage on absorption cost for the new pro duct. c. Determine the target selling price for the new product using the absorption costing approach.\r\n'