Question
Eagle Inc. is an American firm located in Boston. The firm sells standard spare parts to car manufacturers in the US. The following relevant information
Eagle Inc. is an American firm located in Boston. The firm sells standard spare parts to car manufacturers in the US. The following relevant information is supplied - for a budgeted volume of 70,000 units.
Per Unit Total
DM USD 1,800
DL USD 600
VOH USD 400
FOH USD 20,000,000
VSA USD 300
FSA USD 10,000,000
The firm's management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 20% return on investment (ROI) on invested assets of USD 150,000,000. Compute the markup percentage and target selling price that will allow the firm to earn its desired ROI of 20% on this new component!
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Accounting For Risk In The Nhs
Authors: P. Fenn, S. Diacon, R. Hodges, P. Watson
2nd Edition
1859713491, 978-1859713495
