Tri-Valley Corporation uses a cost-plus pricing model based on full cost. Below is cost information for the production and sale of 20,000 units of its sole product.
a. What is the total cost per unit per unit for the company's product?
b. If the company's markup percentage is 25%, what is the ROI or desired profit per unit?
c. What is the expected selling price for the company's product?
d. If Tri-Valley decides to increase its markup percentage to 30%, what is the new expected selling price for the company's product?

Question

Tri-Valley Corporation uses a cost-plus pricing model based on full cost. Below is cost information for the production and sale of 20,000 units of its sole product.  
a. What is the total cost per unit per unit for the company's product?
b. If the company's markup percentage is 25%, what is the ROI or desired profit per unit?
c. What is the expected selling price for the company's product?
d. If Tri-Valley decides to increase its markup percentage to 30%, what is the new expected selling price for the company's product?

Quizplus · Accepted Answer

The Answer of Tri-Valley Corporation uses a cost-plus pricing model based on full cost. Below is cost information for the production and sale of 20,000 units of its sole product.  
a. What is the total cost per unit per unit for the company's product?
b. If the company's markup percentage is 25%, what is the ROI or desired profit per unit?
c. What is the expected selling price for the company's product?
d. If Tri-Valley decides to increase its markup percentage to 30%, what is the new expected selling price for the company's product?

Tri-Valley Corporation Uses a Cost-Plus Pricing Model Based on Full