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Question 1: Straus Company, a manufacturer of electronic products, wants to introduce a new calculator. To compete effectively, the calculator could not be priced at more than $40. The company requires a 20% rate of return on investment on all new products. In order to produce and sell 30,000 calculators each year, the company would have to make an investment of $850,000. What would be the target cost per calculator?
A. $16.50.
B. $23.50.
C. $28.33.
D. $34.33.
Is Gus Swanson's discussion with the team about the prospective sale of Emery unethical? Discuss, citing specific standards from the CMA Code of Professional Ethics for management accountants to support your position.
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