Q3

Cullumber Inc. produces and sells yo-yos. It is currently planning to launch a new glow-in-the-dark model. The following are the projected costs based on projected units sold of 100,000 $1.75 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses 1.05 1.45 2.30 Annual fixed costs and expenses. Manufacturing overhead Selling and administrative expenses $50,000 40,000 Cullumber Inc. will invest $1,000,000 for this new launch and would like to earn a 15% return on its investment. The old model of yo yo sells for $8.04 Calculate the total cost per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Total cost per yo-yo Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, eg, 15.25.) Desired ROI per yo-yo Calculate the markup percentage on the total cost per yo-yo, (Round answer to 2 decimalplaces, es. 15.25%) 96 Markup percentage Calculate the target price per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Target price $ per yo yo