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Canarie World View is considering production of a lighted world globe that the company would price at a markup of 25 percent above full cost.

Canarie World View is considering production of a lighted world globe that the company would price at a markup of 25 percent above full cost. Management estimates that the variable cost of the globe will be $75 per unit and fixed costs per year will be $204,000.

Assuming sales of 1,200 units, what is the full cost of a globe, and what is the price with a 25 percent markup?

Full cost of globe $

Price with 25 percent markup $

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