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Provide the answer and give an analysis of case 4 The following questions refer only to the data given in Exhibit 1. Unless otherwise stated,
Provide the answer and give an analysis of case 4
The following questions refer only to the data given in Exhibit 1. Unless otherwise stated, assume there is no connection between the situations described in the questions; treat each independently. Unless otherwise stated, assume a regular selling price of P4,350 per unit. Ignore income taxes and other costs not mentioned in Exhibit 1 or in a question itself. Round-up final answers of units to a whole number; round-off amounts to two decimal places Case 4. Medical Supplies and Equipment, Inc. has an opportunity to enter a foreign market in which price competition is keen. An attraction of the foreign market is that demand there is greatest when demand in the domestic market is quite low; thus, idle production facilities could be used without affecting domestic business. An order for 1,000 units is being sought at a below-normal price in order to enter this market. Shipping costs for this order will amount to P410 per unit, while total costs of obtaining the contract (marketing costs) will be P22,000. Domestic business would be unaffected by this order. What is the minimum unit price that Medical Supplies and Equipment, Inc. should consider for this order of 1,000 unitsStep by Step Solution
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