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How do dis quesitons ABC Company requires a 20 percent profit on new product. It in the process of releasing a new version of tablet.
How do dis quesitons
ABC Company requires a 20 percent profit on new product. It in the process of releasing a new version of tablet. The tablet has a target price of: $ 550.00 a) Required: Compute the amount of desired profit. (1 Mark) b) Compute the target cost. (1 Mark) ABC Company manufactures a Product S and the per unit data pertaining to this product are as follow: Sale price Direct materials Direct labor Variable overhead Fixed overhead $ $ $ 45.60 9.60 12.00 10.80 4.80 $ The company has sufficient capacity to accept a special order for 27,500 units that it just received. Selling costs associated with this order would be $ 3.60 per unit. c) Required: Compute the minimum selling price per unit. (2 Marks) (3 Marks) Accept/Reject d) If the purchaser is willing to pay the company a price of $ 33.60 per unit, should the company accept the special order. Support your recommendation with the operating incomelloss from this special order. Operating Income LossStep by Step Solution
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