Question
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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