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Cheaper materials-gaining efficiencies in mass production

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"Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Mesa believes that it can charge $20 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $22. By using cheaper materials and gaining efficiencies in mass production, Mesa believes it can reduce Slim Slicer's cost substantially. Mesa wishes to earn a return of 40% of the selling price."

(Weygandt 1042)

Weygandt, Jerry J., Paul Kimmel, Donald Kieso. Financial & Managerial Accounting, 2nd Edition. Wiley, 2014-12-29. VitalBook file.

The citation provided is a guideline. Please check each citation for accuracy before use.

Reference no: EM131016304

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