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Polo manufactures a product that has a price of $50.00 it has costs of $36 per unit A competitor is introducing a new product that

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Polo manufactures a product that has a price of $50.00 it has costs of $36 per unit A competitor is introducing a new product that will sell for $42.00 Management believes it must lower the price to $42,00 to compete in the highly eost-concicur: market, Marketing department believes that the new price will allow Poio to maintair the current sales level of 150,000 unis per rear. What is the tareet cost per unit tor the new price if tarset operating income is 30% of sales? a) 52680 b) 59150 c) 12940 (5) 52800 e) 33250 What is the change in operating income for the yearit only the selling price is changed and costs remain the same? a) Decrease by $950,000 b) Decrease by $1,100.000 C. Decrease by $870.000 d) Decrease by $1200000 e) horese by $740,000 What is the target cost per unit if the selling price is reduced to $42.00 and the company wants to maintain its same income level? a) 326,80 b) $31.50 c) 529.40 d) 528,00

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