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Division X has a target return on investment (ROI) of 12%. It has fixed costs of £400,000 and a variable cost per unit of £5. The net assets of the division forecast for the next period will be £1.5m and the number of units forecast to be sold will be 30000 units.
What is the average contribution and selling price per unit to achieve the divisions ROI target?
Product manufacturing operations can be described as a three stage transformation model of inputs. Inputs Inputs are intangible. Unlike a traditional product, a servic
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