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Sheffield Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following
Sheffield Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 55,000 units. Sheffield Computer Parts management requests that the total unit cost be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of $1,100,000 Compute the markup percentage and target selling price that will allow Sheffield Computer Parts to earn its desired ROI of 25% on this new component. (Round markup percentage to 2 decimal places, e.g. 10.50\%.) Markup percentage % Target selling price $ Assuming that the volume is 44,000 units, compute the markup percentage and target selling price that will allow Sheffield Computer Parts to earn its desired ROI of 25% on this new component. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.) Markup percentage Target selling price %
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