Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Densely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual
Densely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 25,000 units of product, computations for the sales price per clock follow. Unit-level costs $ 240,000 Fixed costs 60,000 Total cost (a) 300,000 Markup (a 0.25) 75,000 Total sales (b) $ 375,000 Sales price per unit (b 25,000) $ 15 Required Hensely has excess capacity and receives a special order for 8,000 clocks for $12
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started