Question
Walton Corporation currently sells 104 units of its product. The company is deciding the price it should charge for a wholesale order of 40 units.
Walton Corporation currently sells 104 units of its product. The company is deciding the price it should charge for a wholesale order of 40 units. The variable cost per unit is $200. This order will not entail any additional fixed cost and the company's current sales will not be affected. The company targets a profit of $4,000 on the wholesale order.
What selling price per unit should the company quote for the bulk order? (Round your answer to the nearest whole dollar.)
Walton Corporation currently sells 104 units of its product. The company is deciding the price it should charge for a wholesale order of 40 units. The variable cost per unit is $200. This order will not entail any additional fixed cost and the company's current sales will not be affected. The company targets a profit of $4,000 on the wholesale order.
What selling price per unit should the company quote for the bulk order? (Round your answer to the nearest whole dollar.)
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To achieve a profit of 4000 on the wholesale order the total contribution margin should be Total con...
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
