30 minutes

Orange Industries Limited is planning to introduce a new product and is management has gathered the following information: Number of units to be produced and sold each year Annual selling and administrative expenses (fixed + variable) Estimated Investment required Desired return on investment (ROI) 10,000 $100,000 $1,000,000 10% Cost estimate for the product is as follows: Direct material Direct labor Variable MOH Fixed MOH Required: $3 per unit $2 per unit $t per unit $100,000 per year Compute the unit product cost-selling and admin expense (per unit) Compute the markup required to achieve the desired ROI Compute the target selling price per unit