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Goliath Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a
Goliath Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Goliath uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. Instructions Compute each of the following for the new product: 1. Total unit variable cost, total unit fixed cost, and total unit cost. (30 pts) 2. Desired ROI per unit. (15 pts) 3. Target selling price. (15 pts) Goliath Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Goliath uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. Instructions Compute each of the following for the new product: 1. Total unit variable cost, total unit fixed cost, and total unit cost. (30 pts) 2. Desired ROI per unit. (15 pts) 3. Target selling price. (15 pts)
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