Tetrus Corporation uses a cost-plus pricing model based on full cost. The following cost information is available for the production and sale of 10,000 units of its sole product: Tetrus desires a profit equal to a 30% return on invested assets of $20,000.
a. What is the total cost per unit per unit for the company's product?
b. What is the ROI or desired profit per unit for the company's product?
c. What is the markup percentage for this product? (round to 2 decimal places)
d. What is the expected selling price for the company's product?

Question

Tetrus Corporation uses a cost-plus pricing model based on full cost. The following cost information is available for the production and sale of 10,000 units of its sole product:  Tetrus desires a profit equal to a 30% return on invested assets of $20,000. 
a. What is the total cost per unit per unit for the company's product?
b. What is the ROI or desired profit per unit for the company's product?
c. What is the markup percentage for this product? (round to 2 decimal places)
d. What is the expected selling price for the company's product?

Quizplus · Accepted Answer

The Answer of Tetrus Corporation uses a cost-plus pricing model based on full cost. The following cost information is available for the production and sale of 10,000 units of its sole product:  Tetrus desires a profit equal to a 30% return on invested assets of $20,000. 
a. What is the total cost per unit per unit for the company's product?
b. What is the ROI or desired profit per unit for the company's product?
c. What is the markup percentage for this product? (round to 2 decimal places)
d. What is the expected selling price for the company's product?

Tetrus Corporation Uses a Cost-Plus Pricing Model Based on Full