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Zeta Automotive Company is developing a new electric car. The company estimates that the target selling price for the car is SAR 70,000. If the
Zeta Automotive Company is developing a new electric car. The company estimates that the target selling price for the car is SAR 70,000. If the desired profit margin is 25% of the selling price, calculate the target cost per unit. Determine whether the estimated target cost per unit is feasible based on current cost estimates of SAR 60,000 per unit.
Requirements:
- Calculate the target cost per unit.
- Determine whether the estimated target cost per unit is feasible.
- Discuss possible actions if the target cost per unit is not feasible.
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