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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 48
Target Sales Price; Return on Investment (ROI) Schwenn Products, a bicycle manufacturer, uses normal volume as the basis for setting prices. That is, it sets prices on the basis of long-term volume predictions and then adjusts these prices only for large changes in pay rates or materials prices. You are given the following information:
Required
1. What sales price is needed to attain the 25% target ROI
2. What ROI rate will be earned at sales volumes of 2,000 and 1,000 units, respectively, using the sales price you determined in requirement 1
Required
1. What sales price is needed to attain the 25% target ROI
2. What ROI rate will be earned at sales volumes of 2,000 and 1,000 units, respectively, using the sales price you determined in requirement 1
Explanation
Verified
Verified
1) Here we need to determine the sale pr...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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