What profit margin percent will the company earn, Operation Management

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What profit margin percent will the company earn

The Radek Company uses cost-plus pricing with a 30% mark-up. The company is currently selling 80,000 units at $65 per unit. Each unit has a variable cost of $47. In addition, the company incurs $240,000 in fixed costs annually. If demand falls to 40,000 units and the company wants to continue to charge the same price what profit margin percent will the company earn?

A. 22.6%

B. 26.2%

C. 57.5%

D. 30%

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Operation Management: What profit margin percent will the company earn

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Operation Management: What profit margin percent will the company earn

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Recent Questions Asked Operation Management

Q : Computing the final value of inventory

Q : Inventory turnover for the year

Q : Determine the price having cost plus pricing

Q : What is the cost per unit to produce model

Q : What profit margin percent will the company earn

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Request for Solution File

Ask an Expert for Answer!!

Operation Management: What profit margin percent will the company earn

Reference No:- TGS0517835

Recent Questions Asked Operation Management

Q : Computing the final value of inventory

Q : Inventory turnover for the year

Q : Determine the price having cost plus pricing

Q : What is the cost per unit to produce model

Q : What profit margin percent will the company earn

Q : Find factors lead to change in supply and change in demand

Q : Problem related to normal packaging cost

Q : Explain the price of the firms common stock

Q : Improvements in the speed and quality

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