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please help! Sarasota Computer Parts Inc is in the process of setting a selling price on a new component it has just designed and developed.
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Sarasota Computer Parts Inc is in the process of setting a selling price on a new component it has just designed and developed. The Following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 54,000 units Per Unit Total $44 $25 $20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses S648.000 $19 $432.000 Sarasota Computer Parts management requests that the total unit cost be used in cost-plus pricing its products On this particular product management also directs that the target price be set to provide a 25% return on investment (ROI) onliwested assets of $1,080.000 Compute the markup percentage and target selling price that will allow Sarasota Computer Parts to earn its desired ROI of 25% on this new component. (Round markup percentage to 2 decimal places, eg. 10.50%) Markup percentage % Target selling price $ . eTextbook and Media Saveforlater Attempts: 0 of 1 used Submit Answer (b) Assuming that the volume is 43.200 units, compute the markup percentage and target selling price that will allow Sarasota Computer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places es 10.50X or 10.50) Markup percentage Torget selling price Step by Step Solution
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