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Chelsea Toy Manufacturing has recently performed an activity-based costing analysis of one of its best-selling toys, the Main Man Robot. The analysis shows the following estimated monthly cost per 1,000 unit production run:
-Chelsea's management has targeted a required return of 20% of monthly revenues. To achieve its objective, Chelsea's monthly cost reduction target is:
A) $60,000
B) $10,000
C) $50,000
D) $0 - the company has already achieved its required return of 20%
Correct Answer:
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