Question
Mason Kitchenware requires a 40% profit margin on the selling price of its jar openers. At a price of $20 per opener, the company expects
Mason Kitchenware requires a 40% profit margin on the selling price of its jar openers. At a price of $20 per opener, the company expects to sell 10,000 openers. Total fixed costs are expected to be $20,000. How much is the target variable cost per jar opener?
| A | $10.00 | |
| B | $9.30 | |
| C | $7.70 | |
| D | $8.00 | |
| E | $10.30 |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Philip E. Fess
20th Edition
0324025424, 978-0324025422
