Custom Shoes Co. has gathered the following information concerning one model of shoe:Variable manufacturing costs $50,000
- Variable selling and administrative costs $25,000
- Fixed manufacturing costs $200,000
- Fixed selling and administrative costs $150,000
- Investment $2,125,000
- ROI 30%
- Planned production and sales 5,000 pairs
Questions
1) What is the total cost per pair of shoes?
2) What is the desired ROI per pair of shoes.