on investment( ROI) of 20 %. Budgeted costs for the coming year are as follows.
a. Determine the total cost per session b. Determine the desired ROI per session c. Calculate the markup percentage on the total cost per session. d. Calculate the target price per session.
E8-9
Rey Custom Electronics( RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time and material pricing. The following budgeted cost data are available.
Loading Charges
Time Charges Material
Technicians ' wages and benefits $ 150,000—
Parts manager ' s salary and benefits— $ 34,000
Office employee ' s salary and benefits 30,000 15,000
Other overhead 15,000 42,000
Total budgeted costs $ 195,000 $ 91,000