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Assume management has decided to go ahead with offering the BMX product line. The owners of Mountain Sports are concerned about the ability of BMX
Assume management has decided to go ahead with offering the BMX product line. The owners of Mountain Sports are concerned about the ability of BMX to cover its fixed costs and provide a good return on investment (RON). An Investment is required for the necessary fixtures, display racks, and Inventory. The owners have provided t minimum return on investment below. Use the cost information and unit sales provided in part A above to answer the questions below. Suggested selling price Required Investment in assets Minimum return on investment $ $ 352.00 207,000 1296 Calculate the following: Unit product cost (costs incurred to get the bike ready for sale) Total selling & administrative costs (costs that help sell the 3 bike or run the business as a whole) Selling & administrative cost per bike o Desired return on investment per bike -1 Markup percentage using absorption costing 2 Surrested selling price using absorption.costing
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