Number please Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for...
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Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Night Glow Inc. recently began production of a new product, the halogen light, which required the investment of $1,440,000 in assets. The costs of producing and selling 7,200 halogen lights are estimated as follows Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unt Fixed costs: 572 Factory overhead $288,000 144,000 16 Selling and administrative expenses $148 Night Glow Inc. is currently considering establishing a selling price for the halogen light. The president of Night Glow Inc. has decided to use the cost-plus approach to product prising and has indicated that the halogen light must earn a 20% return on invested assets
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