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Testbank Question 27 BLG Corporation produces and sells yachts for wealthy customers. BLG's accountants produced the data shown below as a basis for client negotiations
Testbank Question 27 BLG Corporation produces and sells yachts for wealthy customers. BLG's accountants produced the data shown below as a basis for client negotiations for the coming year: CEO Basic yacht Big Winner $ 600 300 Sport Star $ 600 500 $ 600 200 Customization costs 100 400 300 Marketing costs 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. BLG's managers want to achieve a profit margin of 80% based on total costs. Suppose BLG allocates unavoidable corporate costs based on total avoidable costs. The selling price of Sport Star's yacht will be: $1,833 O $3,300 O $1,467 $2,200
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