Determining price for a particular expected volume


A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?

A) $75.00

B) $62.50

C) There is not enough information in the problem to answer

D) $67.50

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Operation Management: Determining price for a particular expected volume
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