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Continue to use the data from CleanShirt: Packaging and production (direct material and labor) $2.6 Advertising and promotion $275,000 Overhead cost $250,000 Now CleanShirt wants
Continue to use the data from CleanShirt:
Packaging and production (direct material and labor) | $2.6 |
Advertising and promotion | $275,000 |
Overhead cost | $250,000
|
Now CleanShirt wants to apply cost-oriented pricing rules and wants to set a price to recover both variable costs and fixed costs. Some research suggests that CleanShirt can sell 80,000 units of deodorant.
(1) Find out the selling price if CleanShirt keeps a markup of 15%;
(2) Find out the selling price if CleanShirt keeps a margin of 15%.
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