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1) Perwin Corporation estimates that an investment of $800,000 would be needed to produce and sell 58.000 units of Product B each year. At this
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Perwin Corporation estimates that an investment of $800,000 would be needed to produce and sell 58.000 units of Product B each year. At this level of activity. the unit product cost would be $25. Selling and administrative expenses would total $750000 each year. The company uses the absorption costing approach to cost plus pricing described in the text. lfa 15% rate of return on investment is desired, then the required markup for Product El would be closest to: (Do not round intermediate calculations.) Multiple Choice 0 48.28% 51.72% 60.00% DOC) 15.00% Cables Electronics Corporation has developed a new instrumentmodel XG75that has been designed to outperform a competitor's bestselling instrument. Model XG75 has a useful life of 40.000 hours of service and its operating cost is $2.40 per hour. In contrast. the competitor's product has a useful life of 20,000 hours of service and has operating costs that average $4.50 per hour. The competitor's instrument sells for $121,000. Cables has not yet established a selling price for model XG75. From a valueibased pricing standpoint what is the reference value that Cables should consider when pricing model X6775? Multiple Choice 0 $211000 $121000 0 0 $205,000 0 $253000Step by Step Solution
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