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Grand Products is a price-setter, and they use cost-plus pricing methodology for pricing their products which are unique, artistically designed architectural decorations. They produce and
Grand Products is a price-setter, and they use cost-plus pricing methodology for pricing their products which are unique, artistically designed architectural decorations. They produce and sell 6,000 units per year, at their maximum capacity. Variable costs are $330 per unit. Total fixed costs are $900,000 per year. The CEO has a target of $50,000 operating income which he wants to hit by year-end. Using the cost-plus pricing method, what price should Grand use?
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