Managerial Accounting Quiz
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COST-VOLUME-PROFIT (CVP) ANALYSIS
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Zeta Inc. has the following cost structure: fixed costs $180,000, variable cost per unit $12, selling price per unit $30. The company wants to achieve an after-tax ROI of 18% on assets of $600,000, with a tax rate of 25%. If variable costs are expected to increase by 25%, what selling price per unit is required to maintain the same unit sales volume of 12,000 units?
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