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Assets Employed: $20,000 Desired Rate of Return on investment (RON): 30% Production Capacity: 2.000 units Current Production: 1.000 units Variable Costs: Production Direct Material: $4.00

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Assets Employed: $20,000 Desired Rate of Return on investment (RON): 30% Production Capacity: 2.000 units Current Production: 1.000 units Variable Costs: Production Direct Material: $4.00 Direct Labor: $3.00 Direct Overhead: 51.00 Marketing Packaging $3.00 Fixed Costs for all units of Current Production) R&D Costs Call foved: 51.000 Production $5.000 (depreciation charges) Marketing Fixed Cost: $2.000 (advertising Financing Fixed Cost: $1,000 interest on loans) Administration Fixed Cost: $3.000 salaries Desired Profit: 30% ROU (Return on investment - Assets Employed The going rate price for a compatible Cof: Make is $32.00 A market shuation has arinen where you need to sell more quantity and take a larger market share in order to challenge the competitors by selling below their price You need to maintain a minimum of $3 proht per unit. Which of the following prices would you set on your of Maker 100 51100 51200 16.00

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