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Lovell Computer Parts developed.The following cost estimates for this new component have been provided by the accounting dep a budgeted volume of 44,000 units. Inc.
Lovell Computer Parts developed.The following cost estimates for this new component have been provided by the accounting dep a budgeted volume of 44,000 units. Inc. is in the process of setting a selling price on a new component it has just designed and Per Total Unit $49 $24 $24 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 528,000 $15 s 352.000 Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 22% return on investment (ROI) on invested assets of $ 1,000,000
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