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hokey (1).docx Open with Google Docs Choose two of the following four questions to answer. Each problem is 10 points. Target Profit Problem. Associated Supply
hokey (1).docx Open with Google Docs Choose two of the following four questions to answer. Each problem is 10 points. Target Profit Problem. Associated Supply Inc. is considering introducing a new product that will require a $250,000 investment of capital. The fixed operating costs associated with the product would be $122,500, while the contribution margin percentage (ratio) would be 42%. Assuming a selling price of $15 per unit, determine the number of units (rounded to the nearest whole unit) Associated Supply would have to sell to generate net operating income of 32% of the amount of capital invested in the new product. Page 8
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