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Yo Inc. produces and sells yo-yos. It is currently planning to launch a new glow-in-the-dark model. The following are the projected costs based on projected
Yo Inc. produces and sells yo-yos. It is currently planning to launch a new glow-in-the-dark model. The following are the projected costs based on projected units sold of 100,000. Variable costs per unit Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses 2.15 $1.35 1.05 1.40 Annual fixed costs and expenses: Manufacturing overhead Selling and administrative expenses $50,000 45,000 Yo Inc. will invest $1,000,000 for this new launch and would like to earn a 20.70% return on its investment. The old model of yo-yo sells for $8.07. Calculate the total cost per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Total cost S per yo-yo Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, eg 15.25.) Desired ROI $ per yo-yo Calculate the markup percentage on the total cost per yo-yo. (Round answer to 2 decimal places, eg. 15.25%.) Markup percentage Calculate the target price per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Target price $ per yo-yo
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