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The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: Statements Total

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The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: Statements Total Costs 780,000 220.000 Total variable production costs Fixed manufacturing overhead Total production costs Total selling, general, and administrative expenses Total costs and expenses 1,000,000 400,000 1,400,000 Units to be Produced 40,000. The company requires a $ 320,000 profit, and 20% return on assets (ROA). The company uses assets totaling $ 1,600,000 in producing Instructions: a Compute the price of (ZZ) using the Gross margin pricing method. (4 marks) b. Compute the price of (ZZ) using the Return on assets pricing method. (4 marks) c. Prepare income statement to support your answer. (4 marks)

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