Periwinkle Manufacturing Company has the following budgeted costs for 10,000 units:
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Variable Costs
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Fixed Costs
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Manufacturing
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$200,000
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$ 75,000
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Selling & Administrative
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100,000
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25,000
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Total
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$300,000
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$100,000
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What is the initial selling price needed to obtain a target profit of $200,000 using the variable cost markup method?
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A.
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$30
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B.
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$55
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C.
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$60
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D.
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$50
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