Question
Waterway Industries has a new product going on the market next year. The following data are projections for production and sales: Variable costs $162500 Fixed
Waterway Industries has a new product going on the market next year. The following data are projections for production and sales:
| Variable costs | $162500 |
| Fixed costs | $450000 |
| ROI | 14% |
| Investment | $1300000 |
| Units produced and sold | 130000 units |
What would the markup percentage be if only 100000 units were sold and Brislin still wanted to earn the desired ROI?
47.12%
38.63%
32%
24.35%
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740460, 978-1119740469
