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II. Price-It Company needs to make a pricing decision on a new product. The company uses cost-plus pricing based on the target return on investment.

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II. Price-It Company needs to make a pricing decision on a new product. The company uses cost-plus pricing based on the target return on investment. The following information is available for the product: $ 25 million 20% Invested capital....... Target return on investment.. Full product costs (per unit) at the output level of 125,000 units.. Full product costs (per unit) at the output level of 80,000 units....... ...... $ 200 $ 250 Required: 1. Compute the prospective selling price assuming the predicted output level is 125,000 units. What is the markup as a percentage of full product costs? 2. Compute the prospective selling price assuming the predicted output level is 80,000 units. What is the markup as a percentage of full product costs

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