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The Estrada Company uses cost-plus pricing with a 0.30 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $3.30. In addition, the company incurs $183,300 in fixed costs annually. If demand falls to 86,600 units and the company wants to continue to earn a 0.30 return, what price should the company charge?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91617992

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