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ACCT - The new CEO of Radco Manufacturing




Question;The new CEO of Radco Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing:Total sales revenueNumber of units produced and soldSelling priceOperating incomeTotal investment in assetsVariable cost per unitFixed costs for the year?500,000 units?$195,000$2,000,000$3.75$3,000,000Requirements:a. Find (i) total sales revenue, (ii) selling price, (ii) rate of return on investment, and (iv) markup percentage on full cost for this produce.b. The new CEO has a plan to reduce fixed costs by $200,000 and variable costs by $0.60 per unit while continuing to produce and sell 500,000 units. Using the same markup percentage as in Requirement a, calculate the new selling price.


Paper#43785 | Written in 18-Jul-2015

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