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8 May, 10:46

1. Reynolds Corporation has the following cost and production information available for the 10,000 units they plan to produce this year: The company wants to earn a 20% return on their investment of $1,440,000. Based on this information, determine the following: a. Calculate the Total Cost per unit: b. Calculate the Desired ROI per unit: c. Calculate the Markup Percentage on Cost: d. Calculate the Target Selling Price: 2. Johnson

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  1. 8 May, 12:45
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    Total cost per unit (Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.) is calculated below:

    (20 + 30 + 8 + 13 + 12 + 7)

    90

    Desired return

    20% on 1440000

    288000

    Per unit 288000/10000.

    28.8

    Markup on cost

    Desired return per unit

    28.8

    Cost 90

    28.8 / 90 = 32% on cost

    Target sale price

    90+28.8

    = 118.8
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