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Airflow Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $28 per unit.
Airflow Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $28 per unit. Airflow management desires a profit equal to a 20% rate of return on invested assets of $1,400,000. They anticipate selling 70,000 units. Their current full cost per unit for the product is $25 per unit.If the company can not cut costs any lower than they already are what would the profit margin on sales be if they meet the market selling price