Question
The Estrada Company uses cost-plus pricing with a 0.31 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $4.40.
The Estrada Company uses cost-plus pricing with a 0.31 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $4.40. In addition, the company incurs $182,400 in fixed costs annually. If demand falls to 76,100 units and the company wants to continue to earn a 0.31 return, what price should the company charge?
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QFinance The Ultimate Resource
Authors: Various Authors
1st Edition
1849300003, 978-1849300001
