=+7-31 K Downward demand spiral OBJECTIVE 8 Link Ltd is a large manufacturer of optical storage systems based in Geelong. Its practical annual capacity is 7500 units and, for the past few years, its budgeted and actual sales and production volume have been 7500 units per year. Link Ltd’s budgeted and actual variable manufacturing costs are $100 per unit, and budgeted and actual total fixed manufacturing costs are $2250000 per year.

Link Ltd calculates full manufacturing cost per unit as the sum of the variable manufacturing cost per unit and the fixed manufacturing costs allocated to the budgeted units produced. Selling price is set at a 100% mark-up to full manufacturing cost per unit.

Required 1 Calculate Link Ltd’s selling price.