10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates . irst year sales will be 50,060 sets, uetermine the price to consumers in the compan, desires a +4 percent margin on sales me simplest metnod of cost .aseu pricing is cost-plus pricing or markup pricing, which simpl, adds a standard mark p to the cost on the product Boll & Branch must specif . expected unit sales so that total unit costs can be determined Cost per unit is: 'Init cost - variable cost + (:ized costs, .nit sales) -$156 + (.500,000/50,000; = $106 0 earn a 40'6 , rofit on sales, Boll &. Branch's markup price is Marup price = init cost/(1-desired return on sales) = $165 (1-0.4) = $166/0.6 = $276.67