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Designs by Candice is a graphic design studio specializing in logos and business stationery. Candice has just made a $64,900 investment in her company and
Designs by Candice is a graphic design studio specializing in logos and business stationery. Candice has just made a $64,900 investment in her company and desires a 12% return. Annually, she designs and prints 2,300 orders. Her costs include
Variable | Fixed | |||||
Design costs | $ | 42 per order | $ | 37,720 per year | ||
Production costs | $ | 115 per order | $ | 32,200 per year | ||
Marketing costs | $ | 2,070 per year | ||||
Shipping costs | $ | 14 per order |
1. Determine the mark-up percentage using (Round all entries to 2 decimal places, e.g. 15.25%.)
Mark-up percentage | ||||
1. | Absorption cost-based pricing | 59.45% | % | |
2. | Variable cost-based pricing | 20.28% | % | |
3. | Total cost-based pricing | 1.67% | % |
Determine the selling price for each mark-up percentage calculated in previous part. (Round all entries to 2 decimal places, e.g. 15.25.)
Selling price | ||||
1. | Absorption cost-based pricing | $ | ||
2. | Variable cost-based pricing | $ | ||
3. | Total cost-based pricing | $ |
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