PNY currently sells its primary product for $85 per unit, with a profit margin of 30%. Cost of goods sold totals 40% of the product’s total cost. PNY’s managers are considering implementing a kaizen costing system.

If PNY is successful in achieving its kaizen goal, what will the reduced non-manufacturing cost (i.e. the cost excluding the product cost) per unit be?

a. $23.56

*b. $19.04

c. $47.60

d. $20.40

Answer rating: 100% (QA)

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