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Sasha Cat Company Sells One of Its Products for £100

Question 96

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Sasha Cat Company sells one of its products for £100 each. Sales volume averages 750 units per year. Recently, its main competitor reduced the price of its product to £80. Sasha Cat Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 750) is as follows: The nonvalue-added cost per unit is
Sasha Cat Company sells one of its products for £100 each. Sales volume averages 750 units per year. Recently, its main competitor reduced the price of its product to £80. Sasha Cat Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 750) is as follows: The nonvalue-added cost per unit is A) £41.67. B) £43.33. C) £40.47. D) £38.33.


A) £41.67.
B) £43.33.
C) £40.47.
D) £38.33.

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