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?
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