Question
Sam Company has predicted the following costs for this year for 25,000 units: Manufacturing Selling and Administrative Variable $100,000 $ 25,000 Fixed 150,000 75,000 Total
Sam Company has predicted the following costs for this year for 25,000 units:
|
| Manufacturing | Selling and Administrative |
| Variable | $100,000 | $ 25,000 |
| Fixed | 150,000 | 75,000 |
| Total | $250,000 | $100,000 |
What is the initial selling price needed to obtain a target profit of $25,000 using the variable cost markup method?
| A. | $15.00 | |
| B. | $ 4.50 | |
| C. | $ 5.00 | |
| D. | $14.70 |
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Challenge Of Management Accounting Change
Authors: John Burns, Mahmoud Ezzamel, Robert Scapens
1st Edition
075066004X, 978-0750660044
