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Twilight Lumina Company recently began production of a new product, the halogen light, which required an investment of $ 1 , 6 2 0 ,
Twilight Lumina Company recently began production of a new product, the halogen light, which required an investment of $ in assets. The costs of producing and selling halogen lights are estimated as follows:
Variable costs per unit: Fixed costs:
Direct materials $ Factory overhead $
Direct labor Selling and admin. exp.
Factory overhead
Selling and admin. exp.
Total $
Twilight Lumina Company is currently considering establishing a selling price for the halogen light. The president of Twilight Lumina Company has decided to use the costplus approach to product pricing and has indicated that the halogen light must earn a rate of return on invested assets.
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