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A firm is analyzing their pricing and operations for next year based on the following anticipated cost structure, the given level of production and
A firm is analyzing their pricing and operations for next year based on the following anticipated cost structure, the given level of production and sales, and their target operating income margin of 8%. Units Produced and Sold Sales Commission Rate Direct Material Cost/Unit Direct Labor Cost/Unit 80,000 10% $15 $10 $8 Total Fixed Manufacturing Overhead Costs $700,000 Total Fixed Selling & Administrative Costs $400,000 Target Operating Income Margin (Operating Income as a % of Sales) 10% Variable Manufacturing Overhead Cost/Unit
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