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2. Calculate the target selling price of the KLIM Mistral using the data below: Purchase cost - 17.43 per unit Freight cost from CN to
2. Calculate the target selling price of the KLIM Mistral using the data below: Purchase cost - 17.43 per unit Freight cost from CN to EU -0.86 per unit Commission charged by Amazon - 15% of the selling price Order fulfilment fees - 6.19 per unit Expected customer service fees - 0.50 per unit Expected cost of refunds and replacements - 0.91 per unit Storage fees - 0.51 per unit VAT rate applicable - 19% Expected advertising cost-8% of the selling price Target GP - 18% a. What would be our Return on Investment (ROI) at the target price? b. What is the cash generated per unit at the target price? c. What would be the lowest selling price needed to break even if we were to liquidate the current stocks
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