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Calcutron Company is contemplating introducing a new type of calculator to complement its existing line of scientic calculators. The target price of the calculator is $75, annual sales volume of the new calculator is expected to be 500,000 units. Calcutron has a 15% return on sales target.
a. Compute the unit target cost per calculator.
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What is the annual net cost of a monthly fee of $5, check processing fee of $.25, average 19 checks per month.
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