Please help solve requirement 3.

Sweet - o - licious makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Sweet - o - licious makes a variety of candy, the cost differences are insignificant, and the cases all sell for the same price. Sweet - o - licious has a total capital investment of $14,000,000. It expects to produce and sell 400,000 cases of candy next year. Sweet - o - licious requires a 10% target return on investment. Expected costs for next year are as follows (Click the icon to view the costs.) Sweet - o - licious prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. -X Read the requirements. Data table $ 14,000,000 10 % = $ 1,400,000 Variable production costs $6.50 per case Variable marketing and distribution costs $1.00 per case Requirement 2. What is the selling price Sweet - o - licious needs to charge to earn the target operating income? Calculate the markup percentage on full cost. Fixed production costs $450,000 Begin by calculating the target revenues by working backwards from the target operating income. Fixed marketing and distribution costs $550,000 Target revenues 5,600,000 Other fixed costs $200,000 Variable costs 3,000,000 Contribution margin 2,600,000 Fixed costs 1,200,000 Print Done Target operating income 1,400,000 Sweet - o - licious must charge $ 14 per case to earn the target operating income. Now calculate the markup percentage on full cost. Determine the formula, then compute the markup percentage. (Enter the per unit amounts to the nearest cent. Enter the markup on full costs as a percentage rounded to two decimals, X.XX%.) Markup per unit Full cost per unit ) x 100 = Markup on full costs $ 3.50 10.50 ) x 100 = 33.33% Requirement 3. Sweet - o - licious's closest competitor has just increased its candy case price to $16, although it sells 36 candy bars per case. Sweet - o - licious is considering increasing its selling price to $15 per case. Assuming production and sales decrease by 8%, calculate Sweet - 0 - licious' return on investment. Is increasing the selling price a good idea? Begin by calculating the new target operating income. Target revenues Variable costs Contribution margin Fixed costs Target operating income