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There are more than one interpretation of what cost-plus pricing could involve. For example, one approach is to determine the price based on full cost
There are more than one interpretation of what cost-plus pricing could involve. For example, one approach is to determine the price based on "full cost" that includes all costs of making the product. Another approach could be to base it on just variable cost. Let's try one exercise here Delphi, Inc. sells computers. You have been given the following information for 2018: Number of computers sold: 40,000 Variable cost per computer: $200 Total fixed cost: $3,600,000 Operating income: $2,400,000 Required: A. What was the average selling price of the computers in 2018? B. What was the percentage markup on Total Cost? Round your answer to two decimal places. C. Moving forward, if Delphi decided to charge the markup based on variable cost while still holding the selling price constant, would the markup percentage increase or c. decrease as a number? By how much? 138 words
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