Suppose a chair manufacture has the following costs and sales expectations:

$•$ Total variable costs: $$1,000,000$

$•$ Total fixed costs: $$400,000$

$•$ Expected unit sales: $20,000$

$1.$ With the original scenario in Exercise $2,$ suppose the chair manufacturer has invested $$1\mathrm{.}5$ million in the business and wants to set a price to earn a $40$ percent ROI. What is the target$-$return price?

Answer rating: 100% (QA)

Answer V To calculate the targetreturn price we need to determine the total cost fixed and variable ... View the full answer