Question
The Estrada Company uses cost-plus pricing with a 0.34 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a
The Estrada Company uses cost-plus pricing with a 0.34 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $4.70. In addition, the company incurs $182,000 in fixed costs annually. If demand falls to 70,200 units and the company wants to continue to earn a 0.34 return, what price should the company charge?
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Bond Markets Analysis And Strategies
Authors: Frank J Fabozzi
8th Edition
013274354X, 9780132743549
