Compute the desired ROI per unit

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Question - ABC Corporation makes a mechanical device for material handling. The following information is available for the company's anticipated annual volume of 600,000 units.

Direct Materials $8 Direct Labour $15 Variable MOH $18 Fixed MOH $3,500,000 $1,500,000

The company has a desired ROI of 30%. It has invested assets of $30,000,000

Required -

1. Compute the total cost per unit.

2. Compute the desired ROI per unit.

3. Compute the target selling price.

4. Compute the mark-up percentage using variable cost per unit.

Reference no: EM133073562

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