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Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units:
Per Unit Total
Direct materials $15
Direct labour 9
Variable manufacturing overhead 12
Fixed manufacturing overhead $400,000
Variable selling and administrative expenses 4
Fixed selling and administrative expenses 130,000
The company has a desired ROI of 30%. It has invested assets of $23,300,000.
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