Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units.
The company has a desired ROI of 20%. It has invested assets of $120,000,000.
Instructions
Compute each of the following:
1. Total cost per unit.
2. Desired ROI per unit.
3. Markup percentage using total cost per unit.
4. Target selling price.

Question

Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units.  
The company has a desired ROI of 20%. It has invested assets of $120,000,000.
Instructions
Compute each of the following:
1. Total cost per unit.
2. Desired ROI per unit.
3. Markup percentage using total cost per unit.
4. Target selling price.

Quizplus · Accepted Answer

The Answer of Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units.  
The company has a desired ROI of 20%. It has invested assets of $120,000,000.
Instructions
Compute each of the following:
1. Total cost per unit.
2. Desired ROI per unit.
3. Markup percentage using total cost per unit.
4. Target selling price.

Rita Corporation Produces Commercial Fertilizer Spreaders