What profit margin percent will the company earn, Accounting Basics

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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?

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Accounting Basics: What profit margin percent will the company earn

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Recent Questions Asked Accounting Basics

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Ask an Expert for Answer!!

Accounting Basics: What profit margin percent will the company earn

Reference No:- TGS080327

Recent Questions Asked Accounting Basics

Q : What would the price be if the company expected

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Q : What would be the impact on profits

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Q : What profit margin percent will the company earn

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