Sandusky Inc $\begin{array}{lr}\text { Variable costs } & \$ 600,000 \\\text { Fixed costs } & 900,000\end{array}$

question 109

Multiple Choice

Sandusky Inc.has the following costs when producing 100,000 units: $\begin{array}{lr}\text { Variable costs } & \$ 600,000 \\\text { Fixed costs } & 900,000\end{array}$ An outside supplier is interested in producing the item for Sandusky.If the item is produced outside, Sandusky could use the released production facilities to make another item that would generate $150,000 of net income.At what unit price would Sandusky accept the outside supplier's offer if Sandusky wanted to increase net income by $120,000?

• A)$8.70
• B)$6.30
• C)$7.50
• D)$5.70

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Definitions:

Walmart

A multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores, known for its vast product selection and low prices.

Geographic Targeting Strategy

A marketing approach that tailors advertising and promotional efforts to consumers in specific geographic areas or locations.

Preferences

Individual choices or tastes that dictate the selection of options or alternatives over others.

Differentiated Marketing Strategy

A marketing approach in which a company develops products or services and marketing campaigns tailored to meet the needs and preferences of different market segments.