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13. A motorcycle firm estimates the total variable cost of RM100 million and a fixed cost of RM400 million to be borne by the company
13. A motorcycle firm estimates the total variable cost of RM100 million and a fixed cost of RM400 million to be borne by the company during the year front. In determining the price, it is assumed that the total sales are 80% of 250,000 motorcycle units a year. The expected rate of return is 15% per annum of total investment of RM2000 million. If pricing made based on the cost increment,
what is the price that should be charged on each motorcycle unit?
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