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ABC Company requires a 20 percent profit on new product. ABC Company requires a 20 percent profit on new product. It in the process of

ABC Company requires a 20 percent profit on new product.

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ABC Company requires a 20 percent profit on new product. It in the process of releasing a new version of tablet. The tablet $ has a target price of 550.00 Required: a) Compute the amount of desired profit. (1 Mark) Compute the target b) cost. (1 Mark) ABC Company manufactures a Product S and the per unit data pertaining to this product are as follow: $ Sale price 45.60 $ Direct materials 9.60 $ Direct labor 12.00 $ Variable overhead 10.80 $ Fixed overhead 4.80 The company has sufficient capacity to accept a special order for 27,500 units that it just received. Selling costs associated $ with this order would be 3.60 per unit. Required: c) Compute the minimum selling price per unit. (2 Marks) d) If the purchaser is willing to pay the company a (3 Marks) $ price of 33.60 per unit, should the Accept/Reject company accept the special order. Support your recommendation with the operating income/loss from this special order. Operating Income/Loss

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