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Homework answers / question archive / Calculate the markup percentage on the total cost per yo-yo
Calculate the markup percentage on the total cost per yo-yo. (Round answer to 2 decimal places, e.g. 15.25%.) Markup percentage 20 % Calculate the target price per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Target price per yo-yo
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 $1.20 Direct labour 1.00 1.20 Variable manufacturing overhead Variable selling and administrative expenses 2.00 Annual fixed costs and expenses: Manufacturing overhead Selling and administrative expenses $50,000 35,000 Yo Inc. will invest $1,000,000 for this new launch and would like to earn a 12.50% return on its investment. The old model of yo-yo sells for $6.60. Calculate the total cost per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Total cost 6.25 per yo-yo Determine the desired ROI per yo-yo. (Round answer to 2 decimal places, e.g. 15.25.) Desired ROI 1.25 per yo-yo
Markup = 20% of the cost
Cost =$ 6.25 per yoyo
Markup = 6.25 * 20%
= 6.25 * 0.2 = 1.25
Target price = cost + markup
= 6.25 + 1.25
= $ 7.5 per yo yo
