Stanley Corporation manufactures an electronic switch for dishwashers. The cost base per unit, excluding selling and administrative expenses, is $60. The per unit cost of selling and administrative expenses is $15. The company’s desired ROI per unit is $6. Calculate its markup percentage on total unit cost.

Respuesta :

Answer:

So markup percentage will be 8 % on total unit cost

Explanation:

We have given that cost base per unit including selling and  administrative expenses is $60

per unit cost of selling and and administrative expenses is $15

The company desired ROI per unit is $6

We have to calculate the markup percentage on total unit cost

Markup percentage on total unit cost is given by '

markup percentage = [tex]\frac{desired\ ROI}{cost\ base\ per\ unit+ The \ per\  unit \ cost \ of \ selling \ and \ administrative\  expense}=\frac{6}{60+15}=0.08=8%[/tex]  

So markup percentage will be 8 % on total unit cost

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