Garfield Corporation is considering building a new plant in Canada. It predicts sales at the...
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Accounting
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 90,000 units at $4.00/unit. Below is a listing of estimated expenses: Total Annual % of Annual Expense Category Expenses that are Fixed Materials $40,000 20% Labor $30,000 30% Overhead $50,000 30% Marketing/Admin $30,000 60% A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. The unit variable cost for Garfield Corporation is O A. $1.91. OB. $2.47 OC. $1.11. D. $0.31

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