Diamond Corporation uses the total cost concept of product pricing. Cost information for the production and sale of 35,000 units of its single product is presented below. Diamond desires a profit equal to a 15% return on invested assets of $280,000. Instructions: Students should compute the following items for Diamond Corporation:
a. Total cost per unit
b. ROI (profit) per unit
c. Markup percentage (round to 2 decimal places)
d. Expected selling price per unit

Question

Diamond Corporation uses the total cost concept of product pricing. Cost information for the production and sale of 35,000 units of its single product is presented below. Diamond desires a profit equal to a 15% return on invested assets of $280,000.  Instructions: Students should compute the following items for Diamond Corporation: 
a. Total cost per unit
b. ROI (profit) per unit
c. Markup percentage (round to 2 decimal places)
d. Expected selling price per unit

Quizplus · Accepted Answer

The Answer of Diamond Corporation uses the total cost concept of product pricing. Cost information for the production and sale of 35,000 units of its single product is presented below. Diamond desires a profit equal to a 15% return on invested assets of $280,000.  Instructions: Students should compute the following items for Diamond Corporation: 
a. Total cost per unit
b. ROI (profit) per unit
c. Markup percentage (round to 2 decimal places)
d. Expected selling price per unit

Diamond Corporation Uses the Total Cost Concept of Product Pricing