Return to the data in Problem 4. The purchasing agent has announced that steel prices

Return to the data in Problem 4. The purchasing agent has announced that steel prices will increase in the current year. The effect will be to increase all variable costs by 12%.

a. If the current sales mix and quantities remain the same, what must DQS charge for each of its products to achieve the $900,000 originally planned?

b. Explain why the required price increase for each product is not 12%

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