ACCT – The new CEO of Radco Manufacturing



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
Selling price
Operating income
Total investment in assets
Variable cost per unit
Fixed costs for the year

500,000 units

a. Find (i) total sales revenue, (ii) selling price, (ii) rate of return on investment, and (iv) markup percentage on full cost for this produce.
b. 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.


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