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Question: Martin Company is considering the introduction of ... Martin Company is considering the introduction of a new product. To determine a selling price, the

Question: Martin Company is considering the introduction of ...

Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:

Number of units to be produced and sold each year 15,000
Unit product cost $ 45
Projected annual selling and administrative expenses $ 68,000
Estimated investment required by the company $ 320,000
Desired return on investment (ROI) 21 %
Required ROI 21 %
Investment $320,000
Selling and administrative expenses 68,000
Total production cost

675,000 is wrong,

what is correct?

Unit product cost per unit $45
Unit sales ?
Total sales ?
Markup percentage ? %

2. Compute the selling price per unit.

Unit product cost ?
Markup ?
Selling price per unit

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