The partial income statement of the Lund Manufacturing Company, a Swedish-based concern producing pharmaceutical products, is presented below:
During the year, short-term interest rates in Sweden averaged 7 percent, while net operating assets averaged SEK 45,000,000.
|
Sales |
SEK 75,000,000 |
|
Cost of goods manufactured and sold: |
|
|
Finished goods, beginning inventory |
-0- |
|
Cost of goods manufactured: (100,000 units) |
|
|
Direct materials used |
SEK 22,500,000 |
|
Direct labor |
11,600,000 |
|
Overhead |
6,000,000 |
|
Cost of goods available for sale |
40,100,000 |
|
Finished goods, ending inventory |
8,000,000 |
|
Cost of goods sold |
32,100,000 |
|
Gross Margin |
SEK 42,900,000 |
The company is entitled to a government subsidy of 5 percent. Its required margin to provide a profit and cover other expenses is 8 percent. All affiliates receive credit terms of 60 days.
Required: Based on this information, at what price would the Lund Manufacturing Company invoice its distribution affiliate in neighboring Finland?