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Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations expected annual volume of 500,000 units: Per Unit Total Direct

Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporations expected annual volume of 500,000 units:

Per Unit Total
Direct materials $13
Direct labour 6
Variable manufacturing overhead 14
Fixed manufacturing overhead $350,000
Variable selling and administrative expenses 6
Fixed selling and administrative expenses 150,000

The company has a desired ROI of 30%. It has invested assets of $23,700,000.

1)Calculate the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25.)

2)Calculate the desired ROI per unit. (Round answer to 2 decimal places, e.g. 15.25.)

3)Calculate the markup percentage using the total cost per unit. (Round answer to 2 decimal places, e.g. 15.25%.)

4)Calculate the target selling price. (Round answer to 2 decimal places, e.g. 15.25.)

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