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Troyanec [42]
3 years ago
11

1. Reynolds Corporation has the following cost and production information available for the 10,000 units they plan to produce th

is year: The company wants to earn a 20% return on their investment of $1,440,000. Based on this information, determine the following: a. Calculate the Total Cost per unit: b. Calculate the Desired ROI per unit: c. Calculate the Markup Percentage on Cost: d. Calculate the Target Selling Price: 2. Johnson
Business
1 answer:
serg [7]3 years ago
3 0

Answer:

Explanation:

Total cost per unit <u><em>(Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.)</em></u> is calculated below:

(20 + 30 + 8 + 13 + 12 + 7)

90

Desired return

20% on 1440000

288000

Per unit 288000/10000.

28.8

Markup on cost

Desired return per unit

28.8

Cost 90

28.8 /90 = 32% on cost

Target sale price

90+28.8

= 118.8

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