Easy Efforts Company is in the process of setting a target price for its coffee mug heaters and portable hard drives. The marketing department has projected impressive sales as soon as they launch.

Cost data relating to the coffee mug heaters and portable hard drives at a budgeted volume of 4,000 units is as follows:

 

                                                                                    Unit Cost 

Direct Materials                                                           $120

Direct Labour                                                              $150

Variable Manufacturing overhead cost                         $25

Variable selling and Administrative expenses              $15

 

                                                                                    Total Cost 

Fixed manufacturing overhead cost                              $650,000

Fixed selling and administrative expenses                    $255,000

 

The company has a desired ROI of 36% and it has invested $2,500,000 in assets.

 

 Required: 

1. Compute the total cost per coffee mug heaters and portable hard drives. 
2. Compute the desired ROI per coffee mug heaters and portable hard drives. 
3. Compute the mark up percentage using total cost per coffee mug heaters and portable hard drives 
4. Compute the target selling price of a coffee mug heaters and portable hard drives.