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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
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 $1.50 1.10 1.30 Variable selling and administrative expenses 2.10 Variable manufacturing overhead Annual fixed costs and expenses: Manufacturing overhead $50,000 Selling and administrative expenses 40,000 Yo Inc. will invest $1,000,000 for this new launch and would like to earn a 20.00% return on its investment. The old model of yo-yo sells for $8.00. (a) Calculate the total cost per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Total cost $ 6.90 (b) per yo-yo Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Desired ROI $ 2.0 per yo-yo
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