Martin Company uses the absorption costing approach to cost - plus pricing. It is considering the introduction
Fantastic news! We've Found the answer you've been seeking!
Question:
Martin Company uses the absorption costing approach to costplus pricing. It is considering the introduction of a new product. To determine a selling price, the company gathered the following information:
Number of units to be produced and sold each year
Unit product cost $
Estimated annual selling and administrative expenses $
Estimated investment required by the company $
Desired return on investment ROI
Required:
Compute the markup percentage on absorption cost required to achieve the desired ROI.
Compute the selling price per unit.
Note: Do not round intermediate calculations. Round your answer to decimal places.
Posted Date: