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Cost Plus Pricing K company is considering the production of a new call phone battery life extender. They would like to price the product at
Cost Plus Pricing K company is considering the production of a new call phone battery life extender. They would like to price the product at 35% about full cost. Assuming the variable cost per unit is $40 and the annual fixed cost is $95,000, what will be the full cost per unit and the resulting selling price if 1,400 units are produced and sold Variable cost $40 Allocated foxed cost per unit $67.86 ($95,000/$1400 units) Total cost $107.86 Selling price cost per unit +35% $107.86 35% (35%-$37.75) Selling price $145.61 Special Order Pricing Assume the facts in #1 above and you receive a request to sell an additional 200 units at $60. Would you accept this offer and what would be your margin if you do
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