The partial income statement of the Lund Manufacturing Company, a Swedish-based concern producing pharmaceutical products, is presented below: During the year, short-term interest rates in Sweden averaged 7 percent, while net operating assets averaged SEK 45,000,000. The company is entitled to a government subsidy of 5 percent. Its required margin to provide a profit and cover other expenses is 8 percent. All affiliates receive credit terms of 60 days.

Required:

Based on this information, at what price would the Lund Manufacturing Company invoice its distribution affiliate in neighboring Finland?

Sales ................... SEK 75,000,000

Cost of goods manufactured and sold:

Finished goods, beginning inventory .......-0-

Cost of goods manufactured: (100,000 units)

Direct materials used ............. SEK 22,500,000

Direct labor .................. 11,600,000

Overhead ................... 6,000,000

Cost of goods available for sale ......... 40,100,000

Finished goods, ending inventory ......... 8,000,000

Cost of goods sold .............. 32,100,000

Gross Margin ................. SEK 42,900,000