Gwen's notebooks produces leather notebooks that sell for $80. Ellie's requires a 20 return on sales. Currentiy costs are $5.000.000 and a cost reduction of $800,000 is required to meet their target. Gwen's assumes they will sell notebooks. O 78,125 O 565.625 O S10.500 O None of the above

Gwen's notebooks produces leather notebooks that sell for $80. Ellie's requires a 20 return on sales. Currentiy costs are $5.000.000 and a cost reduction of $800,000 is required to meet their target. Gwen's assumes they will sell notebooks. O 78,125 O 565.625 O S10.500 O None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Gwen's notebooks produces leather notebooks that sell for $80. Ellie's requires a 206 return on sales. Currently costs are $5,000.000 and a cost
reduction of $800,000 is required to meet their target. Gwen's assumes they will sellnotebooks.
O 78,125
O $65.625
S10,500
O None of the above

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