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Martin Company is considering the introduction of a new product. To determine a selling price,...

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Accounting

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Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Number of units to be produced and sold each year Unit product cost Projected annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) 16,000 40 S 56,000 $ 340,000 19% The company uses the absorption costing approach to cost-plus pricing Required 1. Compute the markup required to achieve the desired ROI. (Round your Required ROl answers to the nearest whole percentagei.e, 0.1234 should be entered as 12). Round your "Markup Percentage" answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34.)) Required RO Investment Selling and administrative expenses Total production cost Unit product cost per unit Unit sales Total sales Markup percentage 191% S 340,000 56,000 40 16,000 S 640,000 2. Compute the selling price per unit. (Round your intermediate and final answers to 2 decimal places.) $40.00 Unit product cost Markup Selling price per unit $40.00

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