Goliath Corporation is in the process of setting a selling price for a new product it has just designed. The following data relate to this product for a budgeted volume of 60,000 units.
Goliath uses cost-plus pricing to set its target selling price. The markup on total unit cost is 30%.
Instructions
Compute each of the following for the new product:
1. Total variable cost per unit, total fixed cost per unit, and total cost per unit.
2. Desired ROI per unit.
3. Target selling price.

Question

Goliath Corporation is in the process of setting a selling price for a new product it has just designed. The following data relate to this product for a budgeted volume of 60,000 units.  
Goliath uses cost-plus pricing to set its target selling price. The markup on total unit cost is 30%.
Instructions
Compute each of the following for the new product:
1. Total variable cost per unit, total fixed cost per unit, and total cost per unit.
2. Desired ROI per unit.
3. Target selling price.

Quizplus · Accepted Answer

The Answer of Goliath Corporation is in the process of setting a selling price for a new product it has just designed. The following data relate to this product for a budgeted volume of 60,000 units.  
Goliath uses cost-plus pricing to set its target selling price. The markup on total unit cost is 30%.
Instructions
Compute each of the following for the new product:
1. Total variable cost per unit, total fixed cost per unit, and total cost per unit.
2. Desired ROI per unit.
3. Target selling price.

Goliath Corporation Is in the Process of Setting a Selling