Packer Stoves Inc. is designing a commercial style stove for residential use. The team developing the specifications cost and pricing decisions includes: production accounting engineering and marketing. The stove includes a warming drawer broiler unit and high BTU burner. With these special features Packer Stoves Inc. believes it can sell the stoves for $4700. Packer Stoves Inc. desires to earn a 25% profit on each stove. Variable costs are $2900 per stove and fixed costs are $1800000. Download the attachment and use it to present your calculations and answers to the questions below:
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