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Assignment Score: SS.05 o Assignment: 24-5B Save Exit Submit Assignment for Grading Email instructor Questions Problem 24-5 (Algorithmic) Question 1 of 1 Check My Work
Assignment Score: SS.05 o Assignment: 24-5B Save Exit Submit Assignment for Grading Email instructor Questions Problem 24-5 (Algorithmic) Question 1 of 1 Check My Work (6 remaining) Problem-Solving Strategy eBook Product Pricing using the Cost-Plus Approach Concepts Differential Analysis for Accepting Additional Business Display Labs Inc. recently began production of a new product, flat panel displays, which required the investment of $1,620,000 in assets. The costs of producing and selling 8,100 units of flat panel displays are estimated as follows: Variable costs per unit: Fixed costs: 81 $324,000 Direct materials Factory overhead Direct labor 18 Selling and administrative expenses 162,000 Factory overhead 36 Selling and administrative expenses 32 Total $167 Display Labs Inc. is currently considering establishing a selling price for flat panel displays. The president of Display Labs has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 20% rate of return on invested assets
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