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Ede4ka [16]
3 years ago
13

Adler Company is considering developing a new product. The company has gathered the following information on this product. Expec

ted total unit cost $25 Estimated investment for new product $500,000 Desired ROI 10% Expected number of units to be produced and sold 1,000 Given this information the desired markup percentage and selling price is:
Business
1 answer:
MrRissso [65]3 years ago
6 0

Answer:

markup 200% over cost

selling price 75 dollars

Explanation:

investment 500,000

return on investment : 10%

500,000 x 10% = 50,000

units producted: 1,000

markup per unit: 50,000 / 1,000 = 50 dollar

the markup will be: 25 * X = 50

X = 2 = 200%

selling price: 25  + 50 = 75

75

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