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Question
Equival Company wishes to sell truck axles to car manufacturers. The current market price of the axles is $400, and Equival knows it must accept the market price. Currently, it costs the company $330 to produce each axle. The company wishes to make a profit equal to 20% of the price. Which of the following strategies should Equival adopt to achieve its objective?
A) Raise the price to $410.
B) Reduce its production costs by $10 per unit.
C) Increase the production costs by $20 per unit.
D) Use advertising to increase the volume of sales.
Answer
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Related questions
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A) chart of accounts.
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Answer: B
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Q:
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B) finding the account number in the chart of accounts.
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D) copying the information from the journal to the ledger.
Q:
In the accounting system, the first place that transactions are recorded is the ledger.
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For liabilities and revenues, a debit increases the account.