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7 May 2020
The projected sales price for a new product (which is still in the development stage of the product life cycle) is P100. The company has estimated the life-cycle cost to be P60 and the first-year cost to be P120. On this type of product, the company requires a P24 per unit profit. What is the target cost of the new product?
The projected sales price for a new product (which is still in the development stage of the product life cycle) is P100. The company has estimated the life-cycle cost to be P60 and the first-year cost to be P120. On this type of product, the company requires a P24 per unit profit. What is the target cost of the new product?
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