Question: need the answer for part D (target price). Martinez Windows inc, is in the process of setting a target price on its newly designed tinted


Martinez Windows inc, is in the process of setting a target price on its newly designed tinted window. Cost data relating to the window at a budgeted volume of 4,000 units are as follows. Martinez Windows uses cost-plus pricing methods that are designed to provide the company with a 20% ROI on its tinted window line. A total of $1,320,000 in assets is committed to production of the new tinted window. (a) Compute the markup percentage under absorption-cost pricing that will allow Martinez Windows to realize its desired ROI. Markup Percentage 8 Compute the target price of the window under absorption-cost pricing. Compute the markup percentage under variable-cost pricing that will allow Martinez Windows to realize its desired ROI. (Round answer to 2 decimal places, eg. 10,50\%) Markup percentage % eTextbook and Media Attempts: 2 of 2 used (d) Your answer is incorrect. Compute the target price of the window under variable-cost pricing
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
