How does the relationship between marginal cost and marginal benefit impact producers?
2 answers:
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Answer:
Selling price per unit = $205
Explanation:
Provided that,
Desired profit = 30% of average assets
= $150,000 30% = $45,000
Total units of chairs to be sold = 400
Variable cost total = 400 $70 = $28,000
Total Fixed cost = $9,000
Add: Desired Profit = $45,000
Total sales value shall be = $28,000 + $9,000 + $45,000 = $82,000
Thus selling price per unit = $82,000/400 = $205 per unit.