Question

1) Answer all 5 parts of the following questions. Using the following data and the data in individual questions to answer these questions about a product. Assume you are the marketing manager for a company.

Variable Costs = $35/unit

Fixed Costs = $450,000 per year

Expected Sales = 700,000 units per year

1-What is the target return price if the target return percentage is 15%? (1 pt.)

Answer 1

Total Variable cost ($35*700000 units)	$          2,45,00,000
Fixed cost	$                4,50,000
Total cost	$          2,49,50,000
Cost per unit	$                      35.64
($24950000/700000)
Target return (35.64*15%)	$                        5.35
Target Price	$                      40.99