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59. 40 www, HILPA FN: Measurement, AICPA PC: The following per unit information is available for a new product of Red Ribbon Company: Desired ROI
59. 40 www, HILPA FN: Measurement, AICPA PC: The following per unit information is available for a new product of Red Ribbon Company: Desired ROI $ 20 Fixed cost Variable cost 60 Total cost 100 Selling price Red Ribbon Company's markup percentage would be a. 17% b. 20% C. 33%. d. 50%. 1120 60. 75 Bryson Company has just developed a new product. The following data is available for this product: Desired ROI per unit $ 30 Fixed cost per unit 50 Variable cost per unit Total cost per unit The target selling price for this product is a. $155. b. $125. c. $105. d. $80. I 125 Use the following information for questions 63-64. Red Grass Company produces high definition television sets. The following information is available for this product: Fixed cost per unit $250 Variable cost per unit 750 Total cost per unit 1,000 Desired ROI per unit 300 63. Red Grass Company's markup percentage would be a. 30%. b. 40% c. 60%. d. 120% Ans: a, LO: 2, Bloom: AP. Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving/Decision Making, IMA: Business Economics 64. The target selling price for this television is a. $550. b. $1,000. c. $1,050. d. $1,300
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