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A Retailer Can Purchase a National Brand of Canned Corn

Question 66

Multiple Choice

A retailer can purchase a national brand of canned corn for $.39.The canned corn sells for $.52.Total direct retailing costs for the corn (warehouse costs and direct labor) equal $.03 per can.In addition,$.05 per can is charged for administrative overhead.What is the direct product profitability per can?


A) $.05
B) $.10
C) $.13
D) The answer cannot be determined from the information provided.

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