A company has $25 per unit in variable costs and $1,000,000 per year in fixed costs. Demand

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A company has $25 per unit in variable costs and $1,000,000 per year in fixed costs.

Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

A) $35

B) $49

C) $27

D) $42

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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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Question Posted: Jan 08, 2013 05:55 AM

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A company has $25 per unit in variable costs and $1,000,000 per year in fixed costs. Demand

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B 49 Computation of the selling pric...View the full answer

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