division x has a target return on investment roi, Strategic Management

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division x has a target return on investment roi

Division X has a target return on investment (ROI) of 12%. It has fixed costs of £400,000 and a variable cost per unit of £5. The net assets of the division forecast for the next period will be £1.5m and the number of units forecast to be sold will be 30000 units.

What is the average contribution and selling price per unit to achieve the divisions ROI target?

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