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Company A operates in a highly competitive market where the market price for its product is $50 per unit. Company A desires a $15 profit
Company A operates in a highly competitive market where the market price for its product is $50 per unit. Company A desires a $15 profit per unit. Company A expects to sell 5,000 units. Additional information is as follows: Variable product cost per unit 15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000 Required: Show all work, all calculations. a) Determine the target cost for Company A's product for it to achieve $15 profit per unit. b) To achieve the target cost per unit, by how much must Company A reduce total expenses
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