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Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 8220 units. Additional information is as follows: $ Variable product cost per unit Variable administrative cost per unit Total fixed overhead Total fixed administrative 32 43 48,300 25,680 Using the total cost method (a.k.a. the "cost-plus pricing approach), what price should Galla charge? O $114.00 0 $105.00 O $88.00 0 $100.00 O $120.00
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