artin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new etermine a selling price, the company gathered the following information: Number of units to be produced and sold each year. Unit product cost 12,000 $26.00 $ 26,400 $ 300,000 12% Estimated annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) equired: . Compute the markup percentage on absorption cost required to achieve the desired ROI. . Compute the selling price per unit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
artin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new etermine a selling price, the company gathered the following information: Number of units to be produced and sold each year. Unit product cost 12,000 $26.00 $ 26,400 $ 300,000 12% Estimated annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) equired: . Compute the markup percentage on absorption cost required to achieve the desired ROI. . Compute the selling price per unit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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