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Samson Corporation is in the process of setting a selling price for a new product it has just designed. The following data relate to this
Samson Corporation is in the process of setting a selling price for a new product it has just designed. The following data relate to this product for a budgeted volume of 50,000 units. ..............................................Per Unit..........Total Direct materials...........................$ 50 Direct labor....................................70 Variable manufacturing overhead........25 Fixed manufacturing overhead......................$1,800,000 Variable selling & adm expenses..........15 Fixed selling and administrative expenses.........1,200,000 Samson uses cost-plus pricing to set its target selling price. The markup on total unit cost is 25%. Compute the Desired ROI per unit. a $45.25 b $55 c $51.25 d $49
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