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Mellie Computer devices inc. is considering the introduction of a new printer. The company's accountant had prepared an analysis computing the taget cost per unit but misplaced his working papers. from memory he remembers the estimated unit sales price was $200 and the target unit cost was $195. sales were projected at 200,000 units with a required $5,000,000 investment.
Instructions
Compute the required minimum rate of returnSalesLess target costdesired ROI(in dollars)InvestmentMinimum ROI
Determine the breakeven point in units and dollars. Also, determine the number of units and dollars that need to be sold to make a target profit of $5,000 a month.
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