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5. Calculate the maximum wholesale price that the Rogue Outdoor can afford in order to earn a 30% profit margin on the sale of its
5. Calculate the maximum wholesale price that the Rogue Outdoor can afford in order to earn a 30% profit margin on the sale of its hiking shoes with a $100 MSRP. (Note: the simple formula in the textbook fails to take into account the fixed costs per unit.) - Average per unit variable cost (Wholesale price Rogue pays for hiking shoes): $50 - Total fixed costs assigned to hiking shoes: $36,000 - Average per unit revenue (price) of hiking shoes: $100
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