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A market research specialist told Peachtree Company that it could expect to sell 660,000 units of its new high-capacity computer disk at a price of

A market research specialist told Peachtree Company that it could expect to sell 660,000 units of its new high-capacity computer disk at a price of $25. Assuming the company desires a profit margin equal to 25% of sales, what target cost per unit is necessary?

$18.75

$25.00

$6.25

None of these

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