Company has decided that it wants to increase its production of widgets. It understands that total cost may increase as much as 30% or as little as 20%. Company’s current profit margin is 30 % of its present cost. Present price is $75/unit. If company has to raise its price that new price may not exceed the present price by more than 2/3. Company would also like to see its profit margin increase by 5% with the new price. At what cost increase can Company achieve its goals?

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Answer Current situation Cost 75130 5769 per unit Profit ... View the full answer