Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it produces. Its
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Question:
Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it produces. Its total fixed cost equals $5million. If the company manufactures 500,000 units, compute the following:
a. Unit cost
b. Markup price if the company desires a 10% return on sales
c. ROI price if the company desires a 20% return on investment
d. ROI price if the company desires a 25% return on an investment of $1 million.
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