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Question 4.3 (Total: 30 maric) Lemon Lime Ltd. forecast sales of 42,000 units and production of 40,000 units. Other budget information related to the company
Question 4.3 (Total: 30 maric) Lemon Lime Ltd. forecast sales of 42,000 units and production of 40,000 units. Other budget information related to the company for the year included: The standard costs remained the same as in the previous year. Lemon Lime Ltd. is considering various cost bases. The company management require a 15% return on an investment of $2,500,000. The company wants this cost built into all cost base options. Required 1. Compute the cost-plus price per unit using direct costing. 2. Compute the cost-plus price per unit using absorption costing. 3. Compute the cost-plus price per unit using the full product cost
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