Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction...
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Accounting
Martin Company uses the absorption costing approach to costplus pricing. It is considering the introduction of a new product. To determine a selling price, the company gathered the following information:
Number of units to be produced and sold each year
Unit product cost $
Estimated annual selling and administrative expenses $
Estimated investment required by the company $
Desired return on investment ROI
Required:
Compute the markup percentage on absorption cost required to achieve the desired ROI.
Compute the selling price per unit.
Note: Do not round intermediate calculations. Round your answer to decimal places.
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