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INFORMATION Lum Gems ( Lum ) is an innovative manufacturer of modern jewellery in a Southern African Country. Based on the results of an extensive
INFORMATION
Lum Gems Lum is an innovative manufacturer of modern jewellery in a Southern African Country. Based on the results of an extensive market research, the finance manager has established a target selling price of R for a newly developed necklace. Lum has estimated total sales volume of units of the necklace across the African Continental Free Trade Area AfCFTA Lum has set a target profit margin of
Informed by the data gathered so far, the finance manager has projected the following:
Production costs per unit R
Direct material
Direct labour
Direct machining and polishing
Machinery setup
Inspection and testing
Total nonproduction costs R
Design salaries and technology
Marketing consultants
Distribution
REQUIRED:
Determine the projected cost gap per unit of the new necklace.
Through a comprehensive review of cost and management accounting literature, explore three viable strategies to mitigate the cost gap identified in Please ensure to include relevant intext citations to substantiate your analysis
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