Question: 2 . As a separate matter from the special order, assume the company s inventory includes 1 , 0 0 0 units of this product

2 .

As a separate matter from the special order, assume the company

s inventory includes

1, 000

units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for the inferior units?

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