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Yahoo Toys, manufactures and sells 1 5 , 0 0 0 units of Teddy Bear toy ( TB ) , in 2 0 1 3

Yahoo Toys, manufactures and sells 15,000 units of Teddy Bear toy (TB), in 2013. The full cost per unit is Rs 200. Yahoo Toys earned a 20% return on an investment of Rs 18,00,000 in 2013.
1. Calculate the selling price and the markup percentage on the full cost per unit of TB toy in 2013.
2. If the selling price in requirement 1 represents a markup percentage of 40% on
variable cost per unit, calculate the variable cost per unit of TB toy in 2013.
3. Calculate Yahoo Toys's operating income if it had increased the selling price to Rs
230. At this price, Yahoo Toys would have sold 13,500 units of TB toy. Assume no
change in total fixed costs. Should Yahoo Toys increase the selling price of TB toy to
Rs 230?
4. In response to competitive pressures, Yahoo Toys must reduce the price of TB toy to Rs 210 in 2014, in order to achieve sales of 15,000 units. Yahoo Toys plans to reduce its investment to Rs 1,650,000. If Yahoo Toys wants to maintain a 20% return on Yahoo Toys, manufactures and sells 15,000 units of Teddy Bear toy (TB), in 2013. The full
cost per unit is Rs 200. Yahoo Toys earned a 20% return on an investment of Rs 18,00,000 in
Calculate the selling price and the markup percentage on the full cost per unit of TB
toy in 2013.
If the selling price in requirement 1 represents a markup percentage of 40% on
variable cost per unit, calculate the variable cost per unit of TB toy in 2013.
Calculate Yahoo Toys's operating income if it had increased the selling price to Rs
At this price, Yahoo Toys would have sold 13,500 units of TB toy. Assume no
change in total fixed costs. Should Yahoo Toys increase the selling price of TB toy to
Rs 230?
In response to competitive pressures, Yahoo Toys must reduce the price of TB toy to
Rs 210 in 2014, in order to achieve sales of 15,000 units. Yahoo Toys plans to reduce
its investment to Rs 1,650,000. If Yahoo Toys wants to maintain a 20% return on
investment, what is the target cost per unit in 2014?investment, what is the target cost per unit in 2014? Attach the excel table screenshot and explain the steps to calculate the above problem
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