Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  1. 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. (a) 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 this year? (b) If foreign sales of 3000 units per year is to be added to the 5000 units government contract above and a 25% profit is acceptable for this contractor again, what could be the new selling price per unit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Business

Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett

8th edition

470530658, 470530650, 978-0470530658

More Books

Students also viewed these Economics questions

Question

2-4. What is Title VII? What does it state?

Answered: 1 week ago

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago