Developed new type of widget

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The Sterling Corp. has developed a new type of widget. The local distributor expects to increase his sales by 23% over the past year due to this new development. Last year's sales were $176,000 at a selling price of $103 per unit. A safety stock of 21 units has eliminated stockouts. The manager would like to cut costs as much as possible and comes to you for advice.

Reference no: EM131939054

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