Compute the selling price per unit

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Reference no: EM133611083

Case: Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company gathered the following information:

Number of units to be produced and sold each year 13,500
Unit product cost $ 20.00
Estimated annual selling and administrative expenses $ 26,100
Estimated investment required by the company $ 570,000
Desired return on investment (ROI) 12%

Required:

Compute the markup percentage on absorption cost required to achieve the desired ROI.
Compute the selling price per unit.

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Reference no: EM133611083

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