Question: please show the formulas Vend-o-licious (V) makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although V makes

please show the formulas  please show the formulas Vend-o-licious (V) makes candy bars for vending

Vend-o-licious (V) makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although V makes a variety of candy, the cost differences are insignificant, and the cases all sell for the same price. V has a total capital investment of $13,000,000. It expects to produce and sell 500,000 cases of candy next year. V requires a 10% return on investment (ROI). Expected costs for the next year are as follow: Variable production costs $3.50/case Vble Mktg & Dist'n costs $1.50/case Fixed production costs $1,000,000 Fixed Mktg & Dist'n costs $700,000 Other fixed costs $500,000 V prices the cases of candy at full cost plus a mark-up to generate profits equal to the target return on capital. 1. What is the target operating income? 2. What is the selling price V needs to charge to earn the target operating income? 3. V's closest competitor has increased its candy price to $15, although it sells 36 candy bars per case. V is considering increasing its selling price to $14 per case. Assuming production and sales decrease by 5%, calculate V's ROI. Is increasing the selling price a good idea

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