Problem
MBI Inc. had sales of $40 million for fiscal 2019. The company's gross profit ratio for that year was 21%.
Task
i. Calculate the gross profit and cost of goods sold for MBI for fiscal 2019. (Enter your answers in millions rounded to 2 decimal places. (i.e., 5,500,000 should be entered as 5.50))
ii. Assume that a new product is developed and that it will cost $487 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 2019.