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Please help Show Zoom H21 B D 1 Good Inc. recently began production of anew product, a digital watch, which required the 2 investment of
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Show Zoom H21 B D 1 Good Inc. recently began production of anew product, a digital watch, which required the 2 investment of $1,800,000 in assets. The costs of producing and selling 80,000 units of the digital 3 watch are estimated as follows: F G 5 Variable Costs: Per Unit 6 Direct Materials 7 Direct Labor 8 Factory Overhead 9 Selling and Admin Expenses 10 Total 10.00 6.00 4.00 5.00 25.00 11 12 Fixed Costs: 13 Factory Overhead 14 Selling and Admin Expenses $ 800,000 $ 400,000 15 16 Good Inc. is currently considering establishing a selling price for the digital watch. The president 17 of Good Inc. has decided to use the cost-plus approach to product pricing and has indicated that 18 the digital watch must earn a 10% rate of return on invested assets. 19 20 Determine the measures assuming that the product cost concept is used: 21 The amount of desired profit from the production and sale of the digital watch. 22 The cost amount per unit 23 The markup percentage 24 The selling price of the digital watch. 25 26 Sheet1 +Step by Step Solution
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