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Orange Industries Limited is planning to introduce a new product and its management has gathered the following information: NumberofunitstobeproducedandsoldeachyearAnnualsellingandadministrativeexpenses(fixed+variable)EstimatedinvestmentrequiredDesiredreturnoninvestment(ROI)10,000$100,000$1,000,00010% Cost estimate for the product is
Orange Industries Limited is planning to introduce a new product and its management has gathered the following information: NumberofunitstobeproducedandsoldeachyearAnnualsellingandadministrativeexpenses(fixed+variable)EstimatedinvestmentrequiredDesiredreturnoninvestment(ROI)10,000$100,000$1,000,00010% Cost estimate for the product is as follows: DirectmaterialDirectlaborVariableMOHFixedMOHRequired:$3perunit$2perunit$1perunit$100,000peryear Compute the unit product cost + selling and admin expense (per unit) Compute the markup required to achieve the desired ROI Compute the target selling price per unit
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