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Quality Shoes Co. has gathered the following information concerning one model of shoe: Variable manufacturing costs $50,000 Variable selling and administrative costs $25,000 Fixed manufacturing

Quality Shoes Co. has gathered the following information concerning one model of shoe:

Variable manufacturing costs $50,000

Variable selling and administrative costs $25,000

Fixed manufacturing costs $200,000

Fixed selling and administrative costs $150,000

Investment $2,125,000

ROI 30%

Planned production and sales 5,000 pairs

2,A What is the total cost per pair of shoes?

a. $50

b. $85

c. $210

d. $120

2,B What is the desired ROI per pair of shoes?

a. $85.00

b. $210.00

c. $127.50

d. $212.50

2,C What is the target selling price per pair of shoes?

a. $177.50

b. $212.50

c. $142.50

d. $197.50

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