1. Find (a) total sales revenue, (b) selling price, (c) rate of return on investment, and (d) markup percentage on full cost for this product.
Fixed cost = 2,500,000/ 500,000 units = $5.00 per unit
13-26) The company believes that it can successfully sell the product for $38 a bottle. The company’s target operating income is 40% of revenue. Calculate the target full cost of producing the 400,000 units. Does the cost estimate meet the company’s requirements? Is value engineering needed?