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The Milk Inc. had the following operating results last year: Milk Chocolate expects identical operating results this year. The Milk Chocolate has the ability to
The Milk Inc. had the following operating results last year: Milk Chocolate expects identical operating results this year. The Milk Chocolate has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that The Peanut Butter Inc. wants to purchase 60,000 pounds of chocolate from The Milk Chocolate. Under these conditions, what amount per pound of chocolate would The Milk Chocolate have to charge the Peanut Butter Inc. for this special order in order to maintain its current profit?
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