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Part A (2.5 marks) The selling price of Sugar has been set at $450 per tonne and at that price the FSC expects to sell

Part A (2.5 marks)

The selling price of Sugar has been set at $450 per tonne and at that price the FSC expects to sell 1000 tonnes per week.

The required profit margin is 20% of sales and the expected production cost is $400 per tonne.

Required:

Calculate the target cost gap.

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