Computing profit margin on sales

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Airflow Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $28 per unit. Airflow management desires a profit equal to a 20% rate of return on invested assets of $1,400,000. They anticipate selling 70,000 units. Their current full cost per unit for the product is $25 per unit.

If the company can not cut costs any lower than they already are what would the profit margin on sales be if they meet the market selling price

Reference no: EM13144325

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