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ACC- Radco Manufacturing




Question;The;new CEO of Radco Manufacturing has asked for a variety of information about the;operations of the firm from last year. The CEO is given the following;information, but with some data missing;Total sales revenue?;Number of units produced and sold 500,000 units;Selling price?;Operating income $195,000;Total investment in assets $2,000,000;Variable cost per unit $3.75;Fixed costs for the year $3,000,000;Requirements;Find (i) total;sales revenue, (ii) selling price, (ii) rate of return on investment, and;(iv) markup percentage on full cost for this produce.;The new CEO has a;plan to reduce fixed costs by $200,000 and variable costs by $0.60 per;unit while continuing to produce and sell 500,000 units. Using the same;markup percentage as in Requirement a, calculate the new selling price.


Paper#41134 | Written in 18-Jul-2015

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