# Homework Q 1-3

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qqnjfba40612

Mathematics

National University

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Surname 1
Professor’s name
Course
Date
Homework Q 1-3
Q1 Martin Company
Exercise A-2
1.
Computation of markup required to achieve the desired ROI:
it is given that ROI is 21%, investment is \$340000, selling and administrative expenses are \$66000, unit
sales are 19500 and unit product cost is \$50.
Markup percentage on absorption cost:
=((required ROI * Investment) + Selling and administrative expenses) / (Unit sales *Unit product cost)
=((0.21 * 340000) + 66000)/(19500*50)
=0.14
2.
Computation of selling price per unit:
it is given that product price is \$50 and markup is 14%
selling price per unit = product price + markup
= 50 + (50 * 0.14)
= \$57
Hence, MC's new product selling price is \$57

Q2: Postal services
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