What is the target cost per unit if the company wants

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Question: A company currently sells its product for $290. It has costs of $200. A competitor has decided to bring a similar product to the market that will sell for $250. Management believes it must lower the price to $250 to compete in the market. The company is currently selling 10,000 products per year before the price reduction.

What is the target cost per unit if the company wants to maintain its same total amount of income (total dollars of profit)?

Reference no: EM133373413

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