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3 Question: Variable vs. Absorption Costing ( 6 manks) Peachtree Doors inc. is in the process of setting a target price on its newly designed
3 Question: Variable vs. Absorption Costing ( 6 manks) Peachtree Doors inc. is in the process of setting a target price on its newly designed patio door. Cost data melatine in the innr is as follows: In order to produce the patio door, the company had to purchase equipment and a factory building, among other assets. The company is looking to get a the following return on this investment in assets. Calculate the following: a. Desired return on investment (ROI) per unit b. Total cost to make one unit (manufacturing cost) c. Total variable cost per unit d. Use absorption costing to determine the markup percentage e. Use your answer from part d and use absorption costing to determine the selling price
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