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Crane 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

Crane 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$1.40
Direct labour1.10
Variable manufacturing overhead1.45
Variable selling and administrative expenses2.15

Annual fixed costs and expenses:
Manufacturing overhead$50,000
Selling and administrative expenses35,000


Crane 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.

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

Total cost$enter the total cost per yo-yo in dollarsper yo-yo

Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.)

Desired ROI$enter the desired return on investment per yo-yo in dollarsper yo-yo

Calculate the markup percentage on the total cost per yo-yo. (Round answer to 2 decimal places, e.g. 15.25%.)

Markup percentageenter the markup percentage on the total cost per yo-yo%


Calculate the target price per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.)

Target price$enter the target price per yo-yo in dollarsper yo-yo

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