Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per Unit Total
Direct materials $390
Direct labor $300
Variable manufacturing overhead $73
Fixed manufacturing overhead $1,395,000
Variable selling and administrative expenses $56
Fixed selling and administrative expenses $337,900

The company has a desired ROI of 15%. It has invested assets of $74,400,000. It anticipates production of 3,100 units per year.

Required:
a. Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
b. Compute the desired ROI per unit. (Round answer to 0 decimal places, e. g. 125.)
c. Compute the markup percentage and target selling price using absorption-cost pricing.

At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. required: a. journalize the adjusting entry to record the accrued fees on december 31. refer to the chart of accounts for exact wording of account titles. b. if the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

What two things do you consider when evaluating the time value of money