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Stevenson Corporation produces and sells yachts for wealthy customers. Stevensons accountants produced the data shown below as a basis for client negotiations for the coming

Stevenson Corporation produces and sells yachts for wealthy customers. Stevensons accountants produced the data shown below as a basis for client negotiations for the coming year:

Big Shot

Super Star

CEO

Basic yacht

$ 600

$ 600

$ 600

Customization costs

300

500

200

Marketing costs

100

400

300

Total costs

$1,000

$1,500

$1,100

Assume that all the preceding costs are avoidable. The company will incur an additional $800 in unavoidable costs during the coming year. Stevensons managers want to achieve a profit margin of 80% based on total costs. Suppose Stevenson allocates unavoidable corporate costs based on total avoidable costs. The selling price of Super Stars yacht will be:

Group of answer choices

$2,200

$3,300

$1,833

$1,467

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