Hernandez, Inc. manufactures five models of picture frames,…

Hernandez, Inc. manufactures five models of picture frames, for a total of 12,000 frames per year. The unit cost to produce a metal frame follows:           Direct Materials                                    $ 4           Direct Labour                                          5           Variable Overhead                                  1           Fixed Overhead (60% unavoidable)        6           Total                                                    $16 A local company has offered to supply Hernandez the 12,000 metal frames it needs for $12 each. Create an incremental analysis for the make-or-buy decision and provide your decision should they make or buy?

Rita Corporation produces commercial fertilizer spreaders. T…

Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita’s anticipated annual volume of 600,000 units:        Per Unit                                                                Total        Direct materials                                                     $37        Direct labour                                                           43        Variable manufacturing overhead                            65        Fixed manufacturing overhead                              $15,000,000        Variable selling and administrative expenses           73        Fixed selling and administrative expenses             $11,400,000   The company has a desired ROI of 20%. It has invested assets of $325,000,000.   Instructions: Calculate each of the following: a)    Total cost per unit. b)    Desired ROI per unit. c)    Markup percentage using total cost per unit. d)    Target selling price.