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Essay text:
How much will it cost Rapid Fire to produce each Advantage battery over the course over the next ten years?
Production cost per unit, over a ten year period
Inflation forecast
Producer price index Production cost
1991 27,00
1992 27,00
1993 28,00
1994 0,02 28,56
1995 0,04 29,70
1996 0,03 30,59
1997 0,03 31,51
1998 0,03 32,46
1999 0,03 33,43
2000 0,03 34,43
2001 0,03 35,47
3. In developing a forecast of the total cost to produce the new Supreme battery in 1994, does your forecast of unit cost for the Advantage battery offer any useful information? Why or Why not?
From TABLE 5, Inflation Forecast: 1994 through 2001, we can read that it will cost the company $28,56 to produce the product in 1994...
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