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. . 1. Ustall the steps in your calculation. Here is what we know Markup is 100% Investment cost is $1,000,000 ROI requirement 30% Variable
. . 1. Ustall the steps in your calculation. Here is what we know Markup is 100% Investment cost is $1,000,000 ROI requirement 30% Variable Cost $400/unit Fored manufacturing cost $300/unit Units to sell: 5,000 first year Sales & Admin cost $70,000/year . . . I 2. Provide the break-even point for the price you determined in the absorption conting 3. Use the numbers provided in step 2 and determine the maximum production contt the target sa $900 4. Look at your absorption costing calculation; what is the impact on the company's Net Operating they sell 7,000 or 3,000 units in the first year
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