Accounting question plz help me out its a word prb?

naylor company is considering the intro of a new product.

number of units to be produces and sold each yr 12,500
unit product cost 30
projected annul selling and administrative expenses 60,000
estimated investment required by the company 5000,000 desired return on investment 18%

1.what is compute the markup required to achieve the desired ROI ?
2. what is compute the target selling price unit ?

Basically, you want a return of 90,000 a year (18% of $500,000) plus you have to cover the cost of production, selling and administration. These costs amount to 12,500 x 30 = 435,000 + 60,000 = 495,000

495,000 + 90,000 profit =585,000
585,000 / 12,500 units = 46 / unit

So you have a 16 markup and a selling price of 46.

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