A company expects to produce and sell 9,000 units of a single product. Management desires an 18% return on assets of $1,750,000. The following additional company information is available:
$\begin{array}{cr}\text { Variable costs (per unit) }\
\text { Production costs } & \$ 79 \
\text { Nonproduction costs } & \$ 5 \
\text { Fixed costs (in total) } & \
\text { Overhead } & \$ 279,000 \
\text { Nonproduction } & \$ 90,000
\end{array}$
Compute markup per unit. Assume that markup percentage equals desired profit divided by total costs.

Question

A company expects to produce and sell 9,000 units of a single product. Management desires an 18% return on assets of $1,750,000. The following additional company information is available:
$\begin{array}{cr}\text { Variable costs (per unit) }\
\text { Production costs } & \$ 79 \
\text { Nonproduction costs } & \$ 5 \
\text { Fixed costs (in total) } & \
\text { Overhead } & \$ 279,000 \
\text { Nonproduction } & \$ 90,000
\end{array}$
 Compute markup per unit. Assume that markup percentage equals desired profit divided by total costs.

Quizplus · Accepted Answer

The Answer of A company expects to produce and sell 9,000 units of a single product. Management desires an 18% return on assets of $1,750,000. The following additional company information is available:
$\begin{array}{cr}\text { Variable costs (per unit) }\
\text { Production costs } & \$ 79 \
\text { Nonproduction costs } & \$ 5 \
\text { Fixed costs (in total) } & \
\text { Overhead } & \$ 279,000 \
\text { Nonproduction } & \$ 90,000
\end{array}$
 Compute markup per unit. Assume that markup percentage equals desired profit divided by total costs.

A Company Expects to Produce and Sell 9,000 Units of a Single