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Flyer company sells a product in a competitive marketplace

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Reference no: EM131802090

Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.

If the company meets the new target cost number, how much will it have to cut costs per unit, if any?

a. $2
b. $0
c. $1
d. $3

Reference no: EM131802090

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