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question is in the picture Martin Lee, Blue River's vice president for marketing, has concluded om his market analysis that sales have been dwindling for

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Martin Lee, Blue River's vice president for marketing, has concluded om his market analysis that sales have been dwindling for the easy-to-assemble wooden tables because of aggressive pricing by competitors. Blue River sells these wooden tables online for $3,000, whereas the competition sells a comparable wooden tables online in the $2,900 range. Martin has determined that dropping the price to $2,850 would regain the rm's annual market share of8,000 wooden tables. Cost data based on sales of 8,000 tables follow: Amount Amount Cost 0.200.000 memo 75.000 111's 75,000 $750,000 Mechmcalassembw Input data (om above): Online selling price per unit = $3,000 __ Competitor's online selling price per unit = $2,900 + Recommending selling price by Blue River = $2,850 . Normal sales volume per year by Blue River 8,000 | + J \\ Re_quired: 3. Calculate the current cost and prot per unit. (2 marks) b. How much of the current cost per unit is attributable to non-valueadded activities? (2 marks) c. Calculate the new target cost per unit and the cost reduction requirement to meet the target cost for the sales price of $2,850 if the prot per unit is maintained. (2 marks) d. What strategy do you suggest for Blue River to attain the target cost calculated in requirement in part c? (4 marks)

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