chapter 9 formulas

Question 1

Calculate ROI per unit using a Desired roi% on investment

Answer 1

total investment x ROI%/ Units

Question 2

Target cost

Answer 2

Selling price - desired ROI = target csots

Question 3

what is the formula to determine cost plus pricing

Answer 3

all product costs + desired ROI

Question 4

How do you calculate Target selling price using full cost plus pricing

Answer 4

all product costs + desired ROi per unit /total unit cost = MP

Total unit costs + (unit costs x MP) - Target selling price

Question 5

How do you calculate target selling price using absorption cost plus pricing

Answer 5

Desired roi per unit + sell and admin(V and F) / unit = MP x Manufacutring cost / unit

Manufact. cost / unit + (MP x Man. cost / unit) = target selling price

Question 6

What are the product costs in full cost plus pricing

Answer 6

all V costs
all F costs (includes selling and admin)
- calculate per unit

Question 7

What are the product costs in absorption costs plus pricing

Answer 7

DM
DL
VMOH
FMOH

Question 8

Variable cost plus pricing what are the product costs

Answer 8

Uses variable costs
DM
DL 
VMOH
V Sell and admin