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XYZ budgets to produce and sell 3800 units of product in R in the forthcoming year. the amount of capital investment attributable to product R will be $600000 and GY requires a rate of return of 15% on all capital invested.
further details concerning product R are follows.
direct material cost per unit - $14
direct labour cost per unit - $19
variable overhead cost per unit - $3
machine hours per unit - 8
Question a: Calculate all answers to the nearest cent.
1). the variable cost of product R is $________ per unit.
2). the total(full) cost of product R is $________ per unit.
3). the selling price of product R which will achieve the specified return on investment is $________ per unit.
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