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. The Smart Company budgets sales of its car tires at $160 per tire and estimates that 10,000 tires can be sold during the coming
. The Smart Company budgets sales of its car tires at $160 per tire and estimates that 10,000 tires can be sold during the coming year of 2021. Variable costs per tire are $60 and the company desires a profit of $30 per tire.
Calculate the target cost per tire. Explain what would happen if the company sold the tires for $40 less.
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