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Alba Company is considering the introduction of a new product To determine the selling price of this product, you have gathered the following information The
Alba Company is considering the introduction of a new product To determine the selling price of this product, you have gathered the following information The discuterial per unit 53,000 The direct stat per unit $2,250 The variable manufacturint couper uit $1,000 The total fisted muchariot costs $1,750,000 The manable selling and administration cost per unit $1.050 The total fixed selling and administration costa $220.000 If the company requires me of return 24% on its investments and S7.500,000 investments are steded. The total directorals vilable to be used in the production is $4,200,000 Required 1.If the company wies stooption costing approach to cont plus pricing, compute The product cost The uppercentare The selling price pret 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit 1 88.800 and the company investing $6,000,000 to purchase equipment teded to produce 100 unsts. If the company requires ute of retum on its investment 2016, compute the target cost per unit 1. Ame Alle prodhon 2 place. The first product is the unique and Alban the only company that produces the product, whereas several companies produce the second product and there is a strong competition in the market regarding this product. Which one approach is better applicable for prime of each product, and why? for the ALT.100 or ALT OM I us fragraph Ariel Opt 4 LX00
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