Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction...
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Martin Company uses the absorption costing approach to cost-plus 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
Destreo return on investi
12,000
$ 26.00
$ 26,400
300,000
12%
Required:
- Compute the markup percentage on absorption cost required to achieve the desired ROl.
- Compute the selling price per unit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
will thumbs up ! thanks :) i included photo for further reference 
Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company gathered the following information: Required: 1. Compute the markup percentage on absorption cost required to achieve the desired ROI. 2. Compute the selling price per unit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places
Martin Company uses the absorption costing approach to cost-plus 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
Destreo return on investi
12,000
$ 26.00
$ 26,400
300,000
12%
Required:
- Compute the markup percentage on absorption cost required to achieve the desired ROl.
- Compute the selling price per unit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
will thumbs up ! thanks :)
i included photo for further reference
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