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Business, 14.12.2019 04:31 jcastronakaya

Martin company is considering the introduction of a new product. to determine a selling price, the company has gathered the following information:

number of units to be produced and sold each year 14,000
unit product cost $ 25
projected annual selling and administrative expenses $ 50,000
estimated investment required by the company $ 750,000
desired return on investment (roi) 12 %
the company uses the absorption costing approach to cost-plus pricing.

required:
1. compute the markup required to achieve the desired roi.
2.compute the selling price per unit.

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