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In Lean Production Simplified the author provides two equations for the profit equation: Cost + Profit margin = Price (old equation) and Price (fixed) -
In Lean Production Simplified the author provides two equations for the profit equation: Cost + Profit margin = Price (old equation) and Price (fixed) - Cost = Profit (new equation). He states that the new equation is the new reality because companies can no longer simply take their costs and add profit to it to reach a price but rather they must meet a market price. As a result the key to profitability is cost reduction. Group of answer choices True False
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