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Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 40,000 units at $7.00/unit. Below is
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 40,000 units at $7.00/unit. Below is a listing of estimated expenses Total Annual % of Annual Expense Category Expenses that are Fixed Materials $70,000 20% Labor $30,000 10% Overhead $90,000 20% Marketing/Admin $70,000 40% A Canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price, No US home office expenses will be allocated to the new facility The unit variable cost for Garfield Corporation is A $5.63 OB $4.93 OC. $7.20 OD 5423
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