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Determining the Markup: Return-on-Investment Pricing 450x480) + 60 Recall the example using a 131.25 percent markup on variable manufacturing cost. Price = cost + (markup

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Determining the Markup: Return-on-Investment Pricing 450x480) + 60 Recall the example using a 131.25 percent markup on variable manufacturing cost. Price = cost + (markup percentage x cost) Price = $400 + (131.25% * $400) = $925 Let's solve for the 131.25 percent markup. Invested capital is $300,000, the desired ROlis 20 percent, and annual sales volume is 480 units. 15-28 kup example, we had a 131.25% markup on variable costs of manufacturing. We have a desired return of 20% o Notes ID qa Determining the Markup: Return-on-Investment Pricing 450x480) + 60 Recall the example using a 131.25 percent markup on variable manufacturing cost. Price = cost + (markup percentage x cost) Price = $400 + (131.25% * $400) = $925 Let's solve for the 131.25 percent markup. Invested capital is $300,000, the desired ROlis 20 percent, and annual sales volume is 480 units. 15-28 kup example, we had a 131.25% markup on variable costs of manufacturing. We have a desired return of 20% o Notes ID qa

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