Martin Company is considering the introduction of a new product. To determine a

Question

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

Compute the markup required to achieve the desired ROI. (Round your Required ROI answers to the nearest whole percentage (i.e, 0.1234 should be entered as 12). Round your "Markup Percentage" answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34.))

Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places. )

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

Explanation / Answer

Estimated Investement 540000 Desired Return 18% Total Return 540000*18% 97200 Profit 97200 Add: Fixed Costs 72000 Contribution 169200 Variable Costs 575000 11500*50 Sales 744200 Markup is 97200/(72000+575000) 0.150232 Te Markup is 15% Selling price 744200/11500 $64.71 approximately

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