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The IBM Company is in the process of developing a new product called (MMA). The product current design carries with it following costs: Total variable
The IBM Company is in the process of developing a new product called (MMA). The product current design carries with it following costs: Total variable production costs Fixed manufacturing overhead Selling Expenses General, and administrative expenses Desired Profit Cost of assets employed Total Costs 500,000 500,000 100,000 400,000 300,000 100,000 - Units to be Produced 1000,000. On average, the company now earns a 6% return on assets (ROA). Instructions: 1. Compute the cost of one unit. 2. Using gross margin pricing, compute the price per unit? 3. Using return on assets pricing, compute the price per unit
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