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What price should the company charge?
The Estrada Company uses cost-plus pricing with a 0.37 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $4.00. In addition, the company incurs $190,300in fixed costs annually. If demand falls to72,600 units and the company wants to continue to earn a 0.37 return, what price should the company charge?
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