Calculate gross profit, cost of goods sold, and selling price
Response to the following problem:
MBI, Inc., had sales of $250 million for fiscal 2013. The company's gross profit ratio for that year was 37.2%.
Required:
a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2013.
b. Assume that a new product is developed and that it will cost $2,669 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2013.
c. From a management viewpoint, what would you do with this information?