Question: Please help in this question Cravings makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Cravings makes
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Cravings makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Cravings makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price. Cravings has a total capital investment of $14,000,000. It expects to produce and sell 700,000 cases of candy next year. Cravings requires a 12% target return on investment. Expected costs for next year are: E (Click the icon to view the costs.) Cravings prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. Read the requirements Requirement 1. What is the target operating income? The target operating income is Requirement 2. What is the selling price Cravings needs to charge to earn the target operating income? Calculate the markup percentage on full cost. To earn the target operating income, on a per unit basis, Cravings must charge Now calculate the markup percentage on full cost. (Round intermediary calculations to the nearest cent. Round the markup on full costs as a percentage rounded to two decimals, X.XX%.) The markup percentage on full cost is %. Requirement 3. Cravings is considering increasing its selling price to $14 per case. Assuming production and sales decrease by 3%, calculate Cravings' return on investment. Is increasing the selling price a good idea? (Enter your answer as a percentage to rounded two decimal places, X.XX%.) Cravings' return on investment is Is increasing the selling price a good idea? V a good idea because which results in a return on investment. The new return on investment the 12% target return on Increasing the selling price investment - Data table Requirements 1. What is the target operating income? 2. What is the selling price Cravings needs to charge to earn the target operating income? Calculate the markup percentage on full cost. 3. Cravings is considering increasing its selling price to $14 per case. Assuming production and sales decrease by 3%, calculate Cravings' return on investment. Is increasing the selling price a good idea? Variable production costs $3.00 per case Variable marketing and distribution costs $2.50 per case Fixed production costs $2,420,000 Fixed marketing and distribution costs $600,000 Other fixed costs $550.000 ull Print Done y 34 Print Done ? (Enter yo
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