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Mint Medley makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Mint Medley makes a variety
Mint Medley makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Mint Medley makes a variety of candies, the cost differences are insignificant, and the cases all sell for the same price. Mint Medley has a total capital investment of $11,000,000. It expects to produce and sell 450,000 cases of candy next year. Mint Medley requires a 12% target return on investment. Expected costs for next year are: (Click the icon to view the costs.) Mint Medley prices the cases of candy at full cost plus markup to generate profits equal to the target return on capital. Read the requirements.
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