Answer:
a)Total cost per unit =$41.729
b)ROI = $6,290,730.
c) Mark-up = 27.7%
Step-by-step explanation:
a)
The total cost per unit = variable cost + fixed cost per unit
Fixed cost unit = ($3,318,400 +$1,626,560)/544,000 units
= 9.089
Total cost per unit = 6.87+10.77+15 +9.089
=$41.729
b)
Desired ROI = 23%. × 27,351,000= $6,290,730.
c)
Mark-up
Mark-up is profit/target cost cost
Profit per unit = $6,290,730./544,000 units
= 11.56 =
Mark-up = (11.56/41.729) × 100 = 27.7%