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Simply Snacks makes candy bars for vending machines and sells them to vandors in cases of 30 bars. Although Simply Snacks makes a variety of

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Simply Snacks makes candy bars for vending machines and sells them to vandors in cases of 30 bars. Although Simply Snacks makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price. Simply Snacks has a total capital investment of $11,000.COD. Il expects to produce and sell 700,000 cases of candy next year. Simply Snacks requires a 12% largel relurn on investment. Expected costs for next year are: Click the icon to view the costs.) Simply Snacks prices the cases of candy at full cost plus markup to generate profits equal to the target retum an capital Data table Requirement 1. What is the largel operating income? (Enter the percenlage as a whole number.) Targel operating income x Requirement 2. What is the seling price Simply Snacks needs to charge to earn the target operating income? Calculate the markup percentage on full cost Begin by calculisting the target revenues by working backwards from the target operating income Target revenues Variable costs Contribution margin Fixed costs Variable production coste $2.50 per case Variable marketing and distribution costs $1.50 per case Fixed production costs $1,930,000 Fixed marketing and distribution costs $750,000 Other fixed costs $200,000 Target operating Income Print Done Simply Snacks must charge per case to earn the target operating income. Now calculate the markup piercentage on full cost. Determine the formula, then compute the markup percentage. (Enter the per unitaraunts to the nearest cent. Enter the markup an full costs as a percentage rounded to two decimals, X.XXX.) ( Markup on ful coels Requirement 3. Simply Snacks is considering increasing its selling price to $11 per case. Assuming production and sales decrease by 3%, calculate Simply Snacks' retum on investment. Is increasing the seling price a good idea? Begin by calculating the new target operating incomo Target revenues Variable costs Contribution margin Fixed costs Fixed costs Target operating income (Enter your answer as a percentage rounded to two decimal places, X.XX%.) Simply Snacks' return on investment is %. Is increasing the selling price a good idea? Increasing the selling price a good idea because which results in a return on investment. The new return on investment the 12% target return on investment

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