Chapter $19$ Homework

$1$

Exercise $19-24($Static$)$ Target Sales Price; Return on Investment $[$LO $19-1]$

Schwenn Products, a bicycle manufacturer, uses normal volume as the basis for setting prices. That is$,$ it sets prices on the basis of long$-$term volume predictions and then adjusts these prices only for large changes in pay rates or materials prices. You are given the

$10$

following information:

points

References

$\backslash$table$[[$Materials$,$ wages, and other variable costs,$$300$ per unit$],[$Fixed costs,$$200,000$ per year$],[$Target return on investment $($ROI$),25\%$ units per$],[$Normal volume,$1,500$ year$],[$Investment $($average total assets$),$$$1,000,000$