Brislin Products has a new product going on the market next year. The following data are projections for production and sales:

Variable costs $250,000
Fixed costs $450,000
ROI 14%
Investment $2,000,000
Sales 200,000 units

What is the target selling price per unit?
a) $3.50
b) $3.65
c) $4.90
d) $2.65

Answer: c) $4.90

ROI / Total Unit Cost = Markup %
1.40 / 3.5 = 40%
Total Unit Cost + ( Total Unit Cost x ROI) = Target Selling Price
3.5 + (3.5 x 40%) = $4.90