Question
The market price for a product has been $63 per unit, but competitive pressures have reduced the market price to $59. The firm manufactures 19,000
The market price for a product has been $63 per unit, but competitive pressures have reduced the market price to $59. The firm manufactures 19,000 of these products per year at a manufacturing cost of $54 per unit (including $32 fixed cost and $22 variable cost per unit). Other selling and administrative costs for the product are $10 per unit.
The firm ignores competitive prices because it has a differentiated product. It uses full manufacturing costbased pricing with a 35% markup. What is the firms price? (Round your answer to 2 decimal places.)
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