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Gulistan Industries Limited is planning to introduce a new product and its management has gathered the following information: Number of units to be produced and
Gulistan Industries Limited is planning to introduce a new product and its management has gathered the following information: Number of units to be produced and sold each year 25,000 Annual selling and administrative expenses (fixed + variable) $120,000 Estimated investment required $1,000,000 18% Cost estimate for the product is as follows: Direct material $6 per unit Direct labor $3 per unit Variable MOH Fixed MOH $200,000 per year Required: a. Compute the unit product cost b. Compute the markup required to achieve the desired ROI c. Compute the target selling price per unit
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