= Homework: Chapter 14 Pricing Decisions Question 7, P14-29 (similar to) Part 1 of 7 HW Score: 9.48%, 1.14 of 12 points Points: 0 of 1 Save Simply Snacks makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Simply Snacks makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price. Simply Snacks has a total capital investment of $11,000,000. It expects to produce and sell 700,000 cases of candy next year. Simply Snacks requires a 12% target return on investment. Expected costs for next year are: (Click the icon to view the costs.) Simply Snacks 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 Data table Variable production costs $2.50 per case Variable marketing and distribution costs $2.00 per case Fixed production costs $4,330,000 Fixed marketing and distribution costs $650,000 Other fixed costs $350,000 Print Done