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Problem 10 - Entrance Test

A company produces a certain product in three different locations. The production cost per unit at location A is $5 and location B is $4. The production cost per unit at location C is 20% higher than at location B.

Correct: B

The production cost at location C is 20% higher than that at location B, or $4(1 + 0.20) = $4.80.