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Product Pricing Using the Cost-Plus Approach Concepts; Differential Analysis Report for Accepting Additional Business the halogen light must earn a 20% rate of return on
Product Pricing Using the Cost-Plus Approach Concepts; Differential Analysis Report for Accepting Additional Business the halogen light must earn a 20% rate of return on invested assets. Required: Note: Round all percentages to two decimal places then use in subsequent computations, if applicable. Round all dollar amounts to the nearest dollar. 1. Determine the amount of desired profit from the production and sale of the halogen light. 2. Assuming that the total cost concept is used, determine the following: a. Cost amount per unit $ 2. Assuminn that the total cost concent is used. determine the followinn: 3. Assuming that the product cost concept is used, determine the followinq: 4. Assuming that the variable cost concept is used, determine the following: a. Cost amount per unit $ b. Markup percentage % c. Selling price of the halogen light $ 5. Comment on any additional considerations that could influence establishing the selling price for the halogen light. affect the domestic sales of the halogen light, and the additional units could be produced using existing capacity. a. Prepare a differential analysis report of the proposed sale to Contech Inc. Feedback Check My Work b. Based on the differential analysis report in part (a), should the proposal be accepted
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