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		$1.20
Direct labour		1.25
Variable manufacturing overhead		1.20
Variable selling and administrative expenses		2.40

Annual fixed costs and expenses:
Manufacturing overhead		$55,000
Selling and administrative expenses		35,000

Yo Inc. will invest $1,000,000 for this new launch and would like to earn a 27.80% return on its investment. The old model of yo-yo sells for $8.83.

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 $1.20 Variable costs per unit Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative expenses 1.25 1.20 2.40 Annual fixed costs and expenses. Manufacturing overhead Selling and administrative expenses $55.000 35.000 a Yo Inc. will invest $1,000,000 for this new launch and would like to earn a 27.80% return on its investment. The old model of yo-yo sells for $8.83. (a) Your answer is correct. Calculate the total cost per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Total cost 6.95 per yo-yo eTextbook and Media Attempts: 1 of 3 used (b) X Your answer is incorrect. Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, eg. 15.25.) Desired ROI $ 278000 per yo-yo