Computing the unit cost growth from given data

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Reference no: EM1317028

Elizabeth Corday, a quality control supervisor for Surgery Products, Inc., is concerned about an increase in distribution costs for disposable syringes from $40 to $50 per case over the last five years. Corday feels that setting up a new direct-sales distribution network at a cost of $58.50 per unit may soon be desirable.

Calculate the unit cost growth rate using the constant rate of change model with continuous compounding.

Reference no: EM1317028

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