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A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of production as
A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of production as $33/unit. If only 5000 units is all that is expected to sell to the government this year what should the per unit selling price be to make a 25% profit overall this year on this activity? [Profit = Revenues - Costs; where Revenues = (# units sold)(unit sales price)]
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