Total cost used to determine the price, Accounting Basics

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Total cost used to determine the price

A company has $27 per unit in variable costs and $1,000,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

a. $51.80

b. $37

c. $27

d. $37.80

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Accounting Basics: Total cost used to determine the price

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Accounting Basics: Total cost used to determine the price

Reference No:- TGS065453

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Recent Questions Asked Accounting Basics

Q : Amount of warranty expense

Q : What are the four parts of cost hierarchy

Q : Net present value of costs cash outflows

Q : Overall profit of processing and selling the material

Q : Total cost used to determine the price

Q : What price should the company charge

Q : Evidence concerning managements assertions

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Total cost used to determine the price

Reference No:- TGS065453

Recent Questions Asked Accounting Basics

Q : Amount of warranty expense

Q : What are the four parts of cost hierarchy

Q : Net present value of costs cash outflows

Q : Overall profit of processing and selling the material

Q : Total cost used to determine the price

Q : What price should the company charge

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Q : What is the total amount of federal-state unemployment tax

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