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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 $1.55 Direct labour 1.25 Variable manufacturing overhead 1.20 Variable selling and administrative expenses 2.15 Annual fixed costs and expenses: Manufacturing overhead $55,000 Selling and administrative expenses 40,000 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 $9.04. Calculate the total cost per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Total cost $ per yo-yo Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Desired ROI $ per yo-yo Calculate the markup percentage on the total cost per yo-yo. (Round answer to 2 decimal places, e.g. 15.25%.) Markup percentage % Calculate the target price per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Target price $ per yo-yo
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