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Business, 13.08.2021 01:00, sandrafina2004
Kashi plans to offer a new line of healthy cereal. The cereal will come in three variations: plain, with raisons, with dried cranberries. The manager has been instructed to set the same price for the three variations even though the production costs differ. Their research has estimated the following numbers for each variation:
Plain costs $1.10 to produce with projected sales of 15,000 boxes;
With Raisons costs $1.25 to produce with projected sales of 17,000 boxes; and
With Cranberries costs $1.45 to produce with projected sales of 12,000 boxes.
What will the manager recommend as the selling price if he uses average-cost pricing and a 30% markup on selling price to determine the price per box?
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Answers: 1
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Kashi plans to offer a new line of healthy cereal. The cereal will come in three variations: plain,...
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