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Gama Company manufactures a product that currently has a full cost of 700 . Its target operating income per unit is 80 and management's budgets

Gama Company manufactures a product that currently has a full cost of 700 . Its target operating income per unit is 80 and management's budgets assume that same target operating income per unit for the foreseeable future. To stay competitive, Gama management believes it must cut its price by 25%. What will be its new target cost?

585

80

700

505

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