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10. [10 points) A firm is planning to manufacture a new product. The sales department estimates the following per unit costs: Material cost = $63,
10. [10 points) A firm is planning to manufacture a new product. The sales department estimates the following per unit costs: Material cost = $63, labor cost = $ 24, Overhead cost per unit $110. The company adds 30% to its manufacturing cost for corporate profit. a. What will be the overall cost for producing a batch of 10,000 units? b. What is the firm's marginal cost? c. What will be the profit on the 10,000 batch if historical data show that 1% of the products will be scrapped in manufacturing, 3% of finished products will be unsold and 2% of the sold product will be returned for full refund
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