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3. Projected cost information for a new product to be produced by Kolier Manufacturing is as follows: Expected variable unit costs: Direct materials Direct labor
3. Projected cost information for a new product to be produced by Kolier Manufacturing is as follows: Expected variable unit costs: Direct materials Direct labor Overhead Selling costs $10.90 7.18 1.92 4.00 Annual fixed costs: Taxes on property used Depreciation on building and equipment Advertising $ 8,870 18,920 38,840 2,070 Other The product is to be sold for $49, a. Compute the number of units that must be sold to carn a profit of $80,000, b. Compute the number of units that must be sold if advertising costs rise by $12,000 and a targeted profit of $120,000 is to be obtained. c. Use the original information and sales of 10,000 units to compute the new selling price that the company must use to obtain a profit of $200,000
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