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Question: Martin Company is considering the introduction of ... Martin Company is considering the introduction of a new product. To determine a selling price, the
Question: Martin Company is considering the introduction of ...
Martin Company is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:
Number of units to be produced and sold each year | 15,000 | |||||||||||||||||||||||||||||||||||||||||||
Unit product cost | $ | 45 | ||||||||||||||||||||||||||||||||||||||||||
Projected annual selling and administrative expenses | $ | 68,000 | ||||||||||||||||||||||||||||||||||||||||||
Estimated investment required by the company | $ | 320,000 | ||||||||||||||||||||||||||||||||||||||||||
Desired return on investment (ROI) | 21 | % | ||||||||||||||||||||||||||||||||||||||||||
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