A company has $35 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 102,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?
Round to two decimal places.
Ans 65.47
Price = (Cost *(1+markup)) / No of units
= ((35*102000 + 1200000)* (1 + 40%)) / 102000
= 65.47
A company has $35 per unit in variable costs and $1,200,000 per year in fixed costs....
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