Gold Company has fixed expenses of $325,000, variable expenses of $5.60 per unit, and a selling price
Question:
Gold Company has fixed expenses of $325,000, variable expenses of $5.60 per unit, and a selling price of $12 per unit. A 15 percent return on invested capital of $500,000 is desired.
Required:
a. Estimate the dollar sales required to obtain the desired return on capital.
b. Assume instead that the selling price per unit is unknown. Estimate the selling price per _unit needed to earn a 15 percent return on the company’s invested capital. Assume sales of 60,000 units.
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Kirti Kaushal
Having experience of more than 10 years is good enough to coach my students. Currently, I am working as an active supervisor of ACCA students. In my career, I helped students in financial accounting, management accounting, cost accounting, financial reporting, taxation, and audit. I also helped students publish their articles or papers in good journals. I also helped students with thesis and objective writing.
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Related Book For 
Cost Accounting Using A Cost Management Approach
ISBN: 9780256174809
6th Edition
Authors: Letricia Gayle Rayburn, Martin K. Gay
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