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A. Martha Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Required: The

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A. Martha Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: Required: The company uses the absorption costing approach to cost-plus pricing. 1. Compute the markup required to achieve the desired ROI. 2. Compute the selling price per unit. B. Solar Products Corporation seeks to enter the handheld electronic calculator market. Management believes that to be competitive in world markets, the price of the electronic calculator that the company is developing cannot exceed $15. The company's required rate of return is 12% on all investments. An investment of $5,000,000 would be required to purchase the equipment needed to produce the 300,000 calculators that management believes can be sold each year at the $15 price

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