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U Company has produced a product that had variable material, labor, and overhead costs of $12 per unit as well as fixed overhead costs of
U Company has produced a product that had variable material, labor, and overhead costs of $12 per unit as well as fixed overhead costs of $3 per unit for a total manufactured cost of $15 per unit.Because this is a new product that does not have a known market value, U Company decides to use cost-plus pricing.The normal markup in the industry is 30% of full manufacturing cost.That means U Company should set the initial selling price per unit at:
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