Using a target ROI pricing strategy,and given the following information,what would be the final unit selling price for a product if a manufacturer invests ₤2,000,000 (U.K.)in a product with unit costs of ₤20 each,expected sales of 10,000 units,and has a desire to achieve 6% ROI?

Question

Quizplus · Accepted Answer

To calculate the final unit selling price using a target ROI pricing strategy, we need to use the following formula:

Final Unit Selling Price = Unit Cost + (Desired ROI / Unit Sales)

Plugging in the given values, we get:

Final Unit Selling Price = ₤20 + (0.06 / 10,000)
Final Unit Selling Price = ₤20 + 0.0006
Final Unit Selling Price = ₤20.0006

Therefore, rounding up to the nearest penny, the final unit selling price would be ₤32.

Using a Target ROI Pricing Strategy,and Given the Following Information,what