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16 January, 19:05

Adler Company is considering developing a new product. The company has gathered the following information on this product. Expected total unit cost $25 Estimated investment for new product $500,000 Desired ROI 10% Expected number of units to be produced and sold 1,000 Given this information the desired markup percentage and selling price is:

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  1. 16 January, 20:31
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    markup 200% over cost

    selling price 75 dollars

    Explanation:

    investment 500,000

    return on investment : 10%

    500,000 x 10% = 50,000

    units producted: 1,000

    markup per unit: 50,000 / 1,000 = 50 dollar

    the markup will be: 25 * X = 50

    X = 2 = 200%

    selling price: 25 + 50 = 75

    75
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