rative cost is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company' management believes that every 9% increase in the selling price of one of the company's products results in a 10% decrease in the products total unit sales.The variable production cost of this product is 12.60 per unit and the variable selling and administrative cost is 4.90 per unit. The product's profit- maximizing price according to the formula in the text is closest to:
a. 104.20
b. 19.11
c. 20.83
d. 96.12
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