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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 Spoints

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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 Spoints The direct material per mit $2.500 The direct labor per una $2,750 The variable manufacturing cost per unit $1,000 The total fixed manufacturing costs $1,620,000 The variable selling and administration cost per unit $900 The total fixed selling and administration costs $575,200 If the company requires rate of return 22% on its investments and S7,400,000 investments are needed. The total direct materials valable to be used in the production is $3,000,000 Required 1. If the company uses absorption costing approach to cost-plus pricing, compute a. The unit product cost b. The markup percentage c. The selling price per unit 2. Assume that the company is considering the introduction of other new product. If the target selling price per units 55.500 and the company resting $3.000.000 to purchase equipment needed to produce 600 units. If the company requires rate of return on its investments 22.compute the target cost per unit 3. Assume Alba produces 2 products. The first product is the unique one and Alba is the only company that produces this product, whereas several companies product the second product and there is a strong competition in the market regarding this product. Which pricing approach is better applicable for pricing of each product, and why

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