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Compute the required minimum rate of return

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Reference no: EM13506085

Mellie Computer devices inc. is considering the introduction of a new printer. The company's accountant had prepared an analysis computing the taget cost per unit but misplaced his working papers. from memory he remembers the estimated unit sales price was $200 and the target unit cost was $195. sales were projected at 200,000 units with a required $5,000,000 investment.

Instructions

Compute the required minimum rate of return
Sales
Less target cost
desired ROI(in dollars)
Investment
Minimum ROI

Reference no: EM13506085

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