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Question - Adly Corp. wishes to earn a 30% return on its $100,000 investment in equipment used to produce product X. Based on estimated sales of 10,000 units of product X next year, the cost per unit would be as follows:
Variable manufacturing costs $5
Fixed selling and administrative costs $2
Fixed manufacturing costs $1
At how much per unit should product X priced for sale?
a. $11
b. $8
c. $10
d. $5
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