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How should trans reengineer its costs

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Question - Trans PLC estimates that a new product will sell in sufficient quantities to justify its manufacture at a selling price of $175. The company needs to invest $5 million to produce a quantity of 10,000 of these new products per year and requires a return on that investment of 12% per annum. The current prediction is that the product will cost $140 to manufacture. How should Trans reengineer its costs to achieve the target selling price and target rate of return?

Reference no: EM131706226

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