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MMLU / The expected selling price for a new product is …

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

The expected selling price for a new product is $19.00. Management's goal is to obtain a 20% contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00 per unit what is the product's target variable manufacturing cost?
Plain-text mathematical notation (without MathML)
The expected selling price for a new product is $19.00. Management's goal is to obtain a 20% contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00 per unit what is the product's target variable manufacturing cost?
Original LaTeX notation
The expected selling price for a new product is $19.00. Management's goal is to obtain a 20% contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00 per unit what is the product's target variable manufacturing cost?

choices

  1. $12.20
  2. $12.80
  3. $15.80
  4. 18.2

subject

professional_accounting

Discussion

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Source and history

task_id
19185673-eddf-59f1-9840-f0de38b6bffb
task_key
all--test--19185673-eddf-59f1-9840-f0de38b6bffb
task_revision_id
1
config / split
all / test

Official source

initial import