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The Music Company manufactures radios. Direct materials are $30 per unit, direct labour is $20 per unit, variable manufacturing overhead is $15 per unit, total
The Music Company manufactures radios. Direct materials are $30 per unit, direct labour is $20 per unit, variable manufacturing overhead is $15 per unit, total fixed manufacturing overhead is $300,000, variable selling and administrative expenses are $10 per unit, and total fixed selling and administrative expenses are $200,000. The company will manufacture and sell 10,000 radios. The company will mark up the radio by 50%. Calculate the target selling price for the radio and total dollar return on investment that is expected. Explain why return on investment is important
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