Homework Q 1-3
Please see attachments. I need the answers for all the questions attached.
Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:
Number of units to be produced and sold each year | 19,500 | ||
Unit product cost | $ | 50 | |
Projected annual selling and administrative expenses | $ | 66,000 | |
Estimated investment required by the company | $ | 340,000 | |
Desired return on investment (ROI) | 21 | % | |
|
The company uses the absorption costing approach to cost-plus pricing.
Required:
1. Compute the markup required to achieve the desired ROI. ((Round your final answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)
2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. )
rev: 11_08_2018_QC_CS-147151, 11_13_2018_QC_CS-147151