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Andrews has a new design for their product Axe next round that can reduce their material cost of producing units from $8.13 to $7.33. Andrew
Andrews has a new design for their product Axe next round that can reduce their material cost of producing units from $8.13 to $7.33. Andrew passes on one quarter of all cost savings by cutting the current price to customers. For simplicity: Current selling price = $19.00; Use current labor costs of $4.02; Use period costs of $7,260 (from Income Statement). Determine the new selling price to break even next round.
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