Question
Nile company invested $1,500,000 in assets to produce (A10) product with a capacity of 20000 units, while normal sales 15000 units :the cost of
Nile company invested $1,500,000 in assets to produce (A10) product with a capacity of 20000 units, while normal sales 15000 units :the cost of production is DM $20 per unit DL $15per unit V.OH $10 per unit Fixed OH is $450,000 for a full capacity Answer following questions What is a minimum price should be set for a special order of 5000 units.1 What is a minimum price should be set for a special order of 8000 units that needs additional fixed cost of $24,000 .2 What is the normal price should be set if markup is 10% of total variable cost 3 What is the normal price should be set if markup is 20% of total cost 4 What is the normal price should be set if markup is 10% return on investment .5 Compute target cost if market price is $80 and the company want to maintain 10% return on investment as a markup.6 If price determines as $90 compute the markup % to variable cost.7
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