Question

Stanley Corporation manufactures an electronic switch for dishwashers. The cost base per unit, excluding selling and administrative expenses, is $60. The per unit cost of selling and administrative expenses is $15. The company’s desired ROI per unit is $6. Calculate its markup percentage on total unit cost.

Answer 1

So markup percentage will be 8 % on total unit cost

Step-by-step explanation:

We have given that cost base per unit including selling and administrative expenses is $60

per unit cost of selling and and administrative expenses is $15

The company desired ROI per unit is $6

We have to calculate the markup percentage on total unit cost

Markup percentage on total unit cost is given by '

markup percentage =
`(desired\ ROI)/(cost\ base\ per\ unit+ The \ per\  unit \ cost \ of \ selling \ and \ administrative\  expense)=(6)/(60+15)=0.08=8%`

So markup percentage will be 8 % on total unit cost