Calculate the variable costs of hand-made rocking chairs using the following information: a. Fixed costs: $300,000 b. Expected unit sales: 600 rocking chairs c. Retail price (including markup): $750 d. Markup (profit margin) 20%
12. Calculate the Target-Return Price to earn a 20% markup on skateboards. How much would the manufacturer have to charge using the following information:
a. Variable costs: $12 per blank board
b. Fixed costs: $500,000
c. Expected unit sales: 100,000 skateboards
d. Invested capital: $0