Reference no: EM132731379
Question - Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units:
Per Unit Total
Direct materials $12
Direct labour 9
Variable manufacturing overhead 12
Fixed manufacturing overhead $325,000
Variable selling and administrative expenses 6
Fixed selling and administrative expenses 175,000
The company has a desired ROI of 30%. It has invested assets of $23,700,000.
Required -
1. Calculate the total cost per unit.
2. Calculate the desired ROI per unit.
3. Calculate the markup percentage using the total cost per unit.
4. Calculate the target selling price.
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