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Discourse Stationery Company is a price-taker and uses target pricing. The company has completed an analysis of its revenues, costs and desired profits and has

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Discourse Stationery Company is a price-taker and uses target pricing. The company has completed an analysis of its revenues, costs and desired profits and has calculated its target tul product cost Refer to the following formation Targetul productos Actual food cost Actual variable cost Production volume 5500 000 per year 5270 000 per your 52 per 140.000 units per year Achaalcons we currently higher than target product cost. Assume al products produced are sold Assuming that w e costs are dependent on commodity prices and cannot be reduced to the targeted cost OM 1500 000 OB 1200 000 C. 5220.000 OD 5230 000

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