Clicker Question Preparation Guide: Ch. 8 Clicker questions will be asked in class based on your completion of this preparation guide. Example in class question: What is the answer to Question 1) b.? You will not have time to complete this guide in class! 1. Reynolds Corporation has the following cost and production information available for the 10,000 units they plan to produce this year: Direct Materials $20 per unit Direct Labor $30 per unit Variable MOH $8 per unit Fixed MOH $130,000 Variable Selling Costs $12 per unit Fixed Selling Costs $70,000 The company wants to earn a 20% return on their investment of $1,440,000. Based on this information, determine the following: a. Calculate the Total Cost per unit: b. Calculate the Desired ROI per unit: c. Calculate the Markup Percentage on Cost: d. Calculate the Target Selling Price: 2. Johnson & Co. makes water ski equipment. The average selling price is $900 per slalom ski. They plan to make 1,000 skis. The company would need to invest $1,500,000 in order to manufacture the water skis. If they want a 20% return on their investment, what is the Target Cost needed to meet their requirements?3. Clark Company has a pet division that sells dog leashes to customers for $25.00. The variable cost per unit is $6 and the fixed cost per unit is $4. Management wants the pet division to transfer 6,000 leashes to the veterinarian division at $11 per unit. The company can save $.50 per unit in variable packaging costs when transferring leashes internally. a. If Clark is operating with excess capacity, what is the minimum transfer price the pet division would accept? b. If Clark is operating with no excess capacity, what is the minimum transfer price the pet division would
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