Menu
support@graduatecourseshelp.com
+1(805) 568 7317

compute the markup percentage to achieve a desired roi of 20 per unit 638001

Cleanmore Products, Inc. is in the process of setting a selling price on its new top of the line, 3 horsepower, 16 gallon, variable speed wet/dry shop vacuum. The per unit variable cost estimates for the new shop vacuum are as follows.

 

Per Unit

Direct Materials

$23

Direct Labor

17

Variable manufacturing overhead

12

Fixed manufacturing overhead

8

In addition, Cleanmore has the following fixed costs per unit at a budgeted sales volume of 10,000 units.

Cleanmore has decided to price its new shop vacuum to earn a 20% return on its investment (ROI) of $1,000,000.
Compute the markup percentage to achieve a desired ROI of $20 per unit:

Compute the target selling price: 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now