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View Police Current Attempt in Progress The Th Town Stove Company he developing a professional model stove aimed at the home market. The company estimates

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View Police Current Attempt in Progress The Th Town Stove Company he developing a professional model stove aimed at the home market. The company estimates that variable costs will be $2.690 per unit and food costs will be $12,400,000 per year. Suppose the company wants to set its price equal to full cost plus 30 percent. To determine con, the company must estimate the number of units it will produce and sell in a year. Suppose the company estimates that it can sell 6,000 units. What price will the company set? Price $ e Textbook and Media Suppose the company sets a price as in part, but the number of units demanded at that price turns out to be 5.000. Revise the price in light of demand for 5.000 units. Revised price eTextbook and Media What will happen to the number of units that will be sold if the price is raised to the one you calculated in parte? The number of units sold will after the increase in the price Question 4 of 6 -/15 View Policies Current Attempt in Progress Pearl City Products has determined the following costs: Order processing (per order) Additional handling costs if order marked rush (per order) Customer service calls (per call) Relationship management costs (per customer per year) $ 6 $ 11 $ 12 $ 4,100 In addition to these costs, product costs amount to 88 percent of sales. In the prior year, Pearl City had the following experience with one of its customers, Johnson Brands: Sales $60,000 Number of orders 250 Percent of orders marked rush Calls to customer service 70% 144 Calculate the profitability of the Edward Lewis account. (Enter loss using either a negative sign preceding the number e.3. -45 or parentheses e.g. (451) Profit/(Loss) of the Edward Lewis account $

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