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MBI Incorporated had sales of $40 million for fiscal 2022. The companys gross profit ratio...

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Accounting

MBI Incorporated had sales of $40 million for fiscal 2022. The companys gross profit ratio for that year was 24%.
Calculate the gross profit and cost of goods sold for MBI for fiscal 2022.
Assume that a new product is developed and that it will cost $477 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2022.
From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price.

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