I\'m really bad at math and I don\'t think I have done these correctly so I was
ID: 2622344 • Letter: I
Question
I'm really bad at math and I don't think I have done these correctly so I was wondering if anyone would be willing to show me how to get these answers? There are four problems
TARGET RETURN BREAK-EVEN ANALYSIS:
5. Your total investment is $240,000., your total fixed costs are $514,300., your expected demand is 200,000 units and your unit variable costs are $10.83; if you desire at least 14% roi, what will you be selling each unit for?
6. Your target return is at least 17% npm (net profit margin); if unit variable costs run $243.77, total fixed costs are $498,100., and you expect to sell about 13,000 of these
Explanation / Answer
TARGET RETURN BREAK-EVEN ANALYSIS:
5. Your total investment is $240,000., your total fixed costs are $514,300., your expected demand is 200,000 units and your unit variable costs are $10.83; if you desire at least 14% roi, what will you be selling each unit for?
Ans:- RETURN ON INVESTMENT = 14% OF 240000
= $33600
THEREFORE, SELLING PRICE PER UNIT IF ROI IS 14% = (TOTAL VARIBLE COST + FIXED COST + RETURN ON INVESTMENT)/EXPECTED DEMANID IN UNITS
= [(10.83*200000) + 514300 + 33600 ] / 200000
= 2713900/200000
= $13.57 PER UNIT
6. Your target return is at least 17% npm (net profit margin); if unit variable costs run $243.77, total fixed costs are $498,100., and you expect to sell about 13,000 of these