Business, 30.03.2020 21:23 cookiemonster0476

Ignite Products is a priceminustaker. The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price of the electric wire is $ 700 per unit. The company has $ 3 comma 200 comma 000 in average assets, and the desired profit is a return of 8% on assets. Assume all products produced are sold. The company provides the following information: Sales volume 120 comma 000 units per year Variable costs $ 690 per unit Fixed costs $ 14 comma 000 comma 000 per year If fixed costs cannot be reduced, how much reduction in variable costs will be needed to achieve the desired target?

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Ignite Products is a priceminustaker. The company produces large spools of electrical wire in a high...

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