Question
The market price for a product has been $52 per unit, but competitive pressures have reduced the market price to $48. The firm manufactures 13,500
The market price for a product has been $52 per unit, but competitive pressures have reduced the market price to $48. The firm manufactures 13,500 of these products per year at a manufacturing cost of $41 per unit (including $24 fixed cost and $17 variable cost per unit). Other selling and administrative costs for the product are $3 per unit. The firm ignores competitive prices because it has a differentiated product. It uses full manufacturing costbased pricing with a 32% markup. What is the firms price? (Round your answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started