51 Required Part C: Pricing (Chapter 9) (9 marks) Assume management has decided to go ahead with offering the BMX product line. The owners of Mountain Sports are concerned about the ability of BMX to cover its fixed costs and provide a good return on investment (ROI). An investment is required for the necessary fixtures, display racks, and inventory. The owners have provided the minimum return on investment below. Use the cost information and unit sales provided in part A above to answer the questions below. 52 Suggested selling price 53 Required investment in assets 54 Minimum return on investment 55 56 Calculate the following: Unit product cost (costs incurred to get the bike ready 57 for sale) Total selling & administrative costs (costs that help sell 58 the bike or run the business as a whole). 59 Selling & administrative cost per bike 60 Desired return on investment per bike 61 Markup percentage using absorption costing 62 Suggested selling price using absorption costing $ 394.00 S 205,000 18%