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An automotive firm produces and sells passenger cars within the South East Asian region. Currently, its manufacturing operations are situated in 3 different countries and
An automotive firm produces and sells passenger cars within the South East Asian region. Currently, its manufacturing operations are situated in different countries and would like to consolidate all into a single location in the Philippines. Based on a study, putting up an assembly plant in a techno park in the Philippines will have a Fixed Cost of $ per month and Variable Cost of $ per unit of car produced. Each car sells $ each.
Formula for reference:
QBEP FC RVC
P QR v FC
Suppose the Philippine plant can only produce a maximum of units per month and the firm still wants to maintain a profit target of $ per month, at what price should the firm sell each car?
Do not include the currency symbol in your answer and round off to decimal places.
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