Calculate the total cost per yoyo

Determine the desired ROI per yoyo

Calculate the markup percentage on the total cost per yo-yo

Calculate the target price per yo-yo

Sheridan Inc. produces and sells yo-yos. It is currently planning to launch a new glow-in-the-dark model. The following are the projected costs based on projected units sold of 100,000. Variable costs per unit: Direct materials $1.50 Direct labour 1.10 1.45 Variable manufacturing overhead Variable selling and administrative expenses 2.00 Annual fixed costs and expenses: Manufacturing overhead Selling and administrative expenses $55,000 35,000 Sheridan Inc. will invest $1,000,000 for this new launch and would like to earn a 28% return on its investment. The old model of yo-yo sells for $8.83