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Why will the planned net profit margin not be achieved

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Reference no: EM132526932

Question 1. If cost-plus pricing is used to set prices based on a required profit margin, and demand is less than anticipated, why will the planned net profit margin not be achieved?

Question 2. If a company uses full absorption income to evaluate a production manager's performance, how might the manager improve income without increasing sales, if variable cost per unit and total fixed costs cannot be changed?

Reference no: EM132526932

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