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Schwenn Products, a bicycle manufacturer, uses normal volume as the basis for setting prices. That is, it sets prices on the basis of long-term
Schwenn Products, a bicycle manufacturer, uses normal volume as the basis for setting prices. That is, it sets prices on the basis of long-term volume predictions and then adjusts these prices only for large changes in pay rates or materials prices. You are given the following information: Materials, wages, and other variable costs Fixed costs Target return on investment (ROI) Normal volume Investment (average total assets) Required: 1. What sales price is needed to attain the 25% target ROI? $ 300 per unit $ 200,000 per year 25% 1,500 units per year $ 1,000,000 2. What ROI rates will be earned at sales volumes of 2,000 and 1,000 units, respectively, using the sales price you determined in requirement 1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What sales price is needed to attain the 25% target ROI? Selling price per unit < Required 1 Required 2 > Schwenn Products, a bicycle manufacturer, uses normal volume as the basis for setting prices. That is, it sets prices on the basis of long-term volume predictions and then adjusts these prices only for large changes in pay rates or materials prices. You are given the following information: Materials, wages, and other variable costs Fixed costs Target return on investment (ROI) Normal volume Investment (average total assets) Required: 1. What sales price is needed to attain the 25% target ROI? $ 300 per unit $ 200,000 per year 25% 1,500 units per year $ 1,000,000 2. What ROI rates will be earned at sales volumes of 2,000 and 1,000 units, respectively, using the sales price you determined in requirement 1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What ROI rate will be earned at sales volumes of 2,000 and 1,000 units, respectively, using the sales price you determined in requirement 17 2,000 units 1,000 units Return on investment (ROI) % % < Required 1 Required 2 >
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