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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 returnSalesLess target costdesired ROI(in dollars)InvestmentMinimum ROI
Compute cost of goods available for sale and the number of units available for sale and compute the number of units in ending inventory.
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