A marketer wants to market a product. The unit variable cost for producing this product is...
A marketer wants to market a product. The unit variable cost for producing this product is $16. The fixed cost is $400,000. The marketer expects to sell 80,000 units of the product and wants to earn a 30 percent markup on sales. How much should the markup price be for this product?
Homework Answers
Mark up price = Selling Price - Cost per Price
Variable cost per unit = $16
Fixed Cost per unit = $5 ($400,000/80,000 units)
Total cost per unit = $21 ($16 + $5)
It is given as Mark up percentage on sales is 30%, that means, on sales it is 30% but we do not have the information on the selling price so we need to calculate how much markup percentage on cost.
Mark up price = Selling Price - Cost per Price
If total sales is 100% then
On sales, Markup percentage is 30%
On Cost, Markup percentage is 70% (100% - 30%)
So, the Markup price of this product is $9 ($21*30/70).
Therefore, markup price of this product is $9 per unit.
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A marketer wants to market a product. The unit variable cost for
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Q3. A marketer wants to market a product. The unit variable cost for producing this product is $16. The fixed cost is $400,000. The marketer expects to sell 80,000 units of the product and wants to earn a 30 percent markup on sales. How much should the markup price be for this product? (1 point, word limit: 50 words)
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