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E21.2 (LO 1) Eckert Company is involved in producing and selling high-end golf equipment. The com- pany has recently been inv

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Answer #1

Rate of return = $8,000,000 X 20% = $1,600,000

Rate of return per LittleLaser = $1,600,000 / 100,000 = $16

Selling price per unit = $90

Cost per unit of LittleLaser = $90 - $16 = $74

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