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Green Lawn Corporation Wants to Produce a New Lawnmower 1
Through Reverse Engineering, Green Lawn Found a Design Improvement

Question 80

Multiple Choice

Green Lawn Corporation wants to produce a new lawnmower. The financial data is as follows:
Other information:
 Target price: $450 Target profit: $75 Estimated cost given current product and process designs: $400\begin{array}{lr}\text { Target price: } & \$ 450 \\\text { Target profit: } & \$ 75 \\\text { Estimated cost given current product and process designs: } & \$ 400\end{array} 1.
Through reverse engineering, Green Lawn found a design improvement that would save $10 per unit.
2.
It also found that it could purchase a similar component of a different brand at a lower price, which would save $20 per unit.
-Refer to the Figure.What is Green Lawn's new expected profit?


A) $50
B) $75
C) $80
D) $105

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