Everett Electronics has a target selling price of $100 per unit, variable manufacturing costs of $40 per unit and fixed manufacturing costs of $20 per unit. Variable selling and administrative costs are $10 per unit and fixed selling and administrative costs are $5 per unit. Everett uses the variable-cost approach to pricing and expects to sell 10,000 units. Instructions Prepare a budgeted income statement and determine Everetts budgeted ROI given an investment of $1,000,000.

Prepare a budgeted income statement and determine Everetts budgeted ROI given an investment of $1,000,000.