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Rojo Enterprises budgets sales of 5,000 watches. Rojo wants a profit of 30% on each watch. Rojo operates in a highly competitive market where each
Rojo Enterprises budgets sales of 5,000 watches. Rojo wants a profit of 30% on each watch. Rojo operates in a highly competitive market where each watch sells for $80. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials $ 11 Overhead $ 45,000 Direct labor 12 General and administrative 18,000 Overhead 10 General and administrative 16 Rojo must reduce total expenses by how much if they want to attain the target cost per watch? A. $38,000 B. $29,500 C. $18,500 D. $28,000 E. $35,000
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