Grand-o-licious makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Grand - o - licious makes a variety of candy, the cost differences are insignificant, and the cases all sell for the same price. Grand-o-licious has a total capital investment of $15,000,000. It expects to produce and sell 550,000 cases of candy next year. Grand - o - licious requires a 10% target return on investment. Expected costs for next year are as follows: (Click the icon to view the costs.) Grand-o-licious prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. Read the requirements. Requirement 1. What is the target operating income? (Enter the percentage as a whole number.) = Target operating income X % = Requirements ... Data table Variable production costs $4.00 per case Variable marketing and distribution costs Fixed production costs $2.50 per case $1,825,000 Fixed marketing and distribution costs $700,000 $650,000 1. What is the target operating income? 2. What is the selling price Grand - o - licious needs to charge to earn the target operating income? Calculate the markup percentage on full cost. 3. Grand-o-licious's closest competitor has just increased its candy case price to $17, although it sells 36 candy bars per case. Grand - o - licious is considering increasing its selling price to $16 per case. Assuming production and sales decrease by 4%, calculate Grand-o-licious' return on investment. Is increasing the selling price a good idea? Other fixed costs Print Done