ChemCo has developed a new product, and has consulted with the Marketing Department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be appropriate. ChemCo has been able to keep the cost per unit at $50.00.

The company has spent a total of $900,000 to design and develop this product.

Required: Use the above information to compute as follows:

1.Compute the expected margin for ChemCo

2.Compute the expected turnover

3.Compute the ROI

Explain why it is necessary to do the above computations, and how management can use this information