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April 16, 2014

Homework Help: Managerial Acct

Posted by Cedreana on Sunday, January 23, 2011 at 1:27am.

The owners have invested $2,000,000 in the company and feel that they should be earning at
least 2% per month on these funds. If the absorption costing approach to pricing were used,
what would be the target selling price based on the current sales of 50,000 units? What do you
think would happen to the net operating income of the company if this price were charged?

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