Brislin Products has a new product going on the market next year. The following data are projections for production and sales:

ROI

Investment

Sales

$14\%$

Total costs for $200,000$ units

$$2,000,000$

$200,000$ units

$$700,000$

$($a$).$ What is the target selling price per unit to earn the desired profit?

a$.$ $$4\mathrm{.}90$

b$.$ $$3\mathrm{.}50$

c$.$ $$2\mathrm{.}65$

d$.$ $$3\mathrm{.}65$

Hint:

Step $1-$ Calculate the total profit desired by Brislin.

Step $2-$ Calculate the profit desired per unit.

Step $3-$Calculate cost per unit.

Step $4-$Calculate the target price per unit

$($b$).$ What is the markup percentage on cost$?$

a$.112\%$

b$.20\%$

c$.62\%$