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Question 2 1 pts Truman Company has developed a new gadget with the following cost information Variable manufacturing costs:

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Answer #1

Return on investment = $800,000 * 15%

= $120,000

Return on investment per unit = $120,000 / 10,000

= $12 per unit

Variable manufacturing cost $25
Fixed manufacturing cost per unit ($60,000 / 10,000) $6
Variable selling and administrative expenses $2
Fixed selling and administrative expenses per unit ($10,000 / 10,000) $1
Retrun on investment per unit $12
Selling price $46

Sellling price is $46 per unit

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