Target ROI is 20% Invested Capital is $518,556 Full Cost per unit $1,024 Expected sales volume is 929 units. If the company prices each unit to earn the target ROI, what is the price per unit? Round your answer to the nearest whole dollar. Don't use dollar signs or commas when entering your answer.

Target ROI is 20% Invested Capital is $518,556 Full Cost per unit $1,024 Expected sales volume is 929 units. If the company prices each unit to earn the target ROI, what is the price per unit? Round your answer to the nearest whole dollar. Don't use dollar signs or commas when entering your answer.

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Description: Target ROI is 20%Invested Capital is $518,556Full Cost per unit $1,024Expected sales volume is 929 units.If the company prices each unit to earn the target ROI, what is the price per unit?Roundyour answer to the nearest whole dollar. Don't use dolla

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Target ROI is 20%
Invested Capital is $518,556
Full Cost per unit $1,024
Expected sales volume is 929 units.
If the company prices each unit to earn the target ROI, what is the price per unit?
Round
your answer to the nearest whole dollar. Don't use dollar signs or commas when
entering your answer.
ASUS

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