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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:You have just been promoted to product manager for the Allgood (AG) brand multi-symptom 12 - hour analgesic product. The AG product is currently selling at a retail price of $8.99. Retail
margins on the product are 33 %, while wholesalers take a 12% margin. Allgood and its direct competitors sell a total of 200 million units annually; Allgood has 25% of this market. Variable
manufacturing costs for Allgood are $2.92 per unit. Fixed manufacturing costs are $950,000. The advertising budget for Allgood is $5,500,000. The Allgood product manager's salary and expenses
total $70,000. Salespeople are paid entirely by a 12% commission. Shipping costs, breakage, insurance, and so forth are $0.15 per unit. What is the Allgood selling price?
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