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GenaCL600 [577]
3 years ago
9

Camelot Company has estimated the following costs for this year for 50,000 units: Manufacturing Selling and Administrative Varia

ble $100,000 $ 25,000 Fixed 150,000 75,000 Total $250,000 $100,000 What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method
Business
1 answer:
pantera1 [17]3 years ago
6 0

Answer:

the initial selling price is $8 per unit

Explanation:

The computation of the initial selling price is shown below;

Total manufacturing costs = $250,000

Now

Markup required is

= $100,000 + $50,000

= $150,000

So, the Initial selling price is

= ($250,000 + $150,000) ÷ 50,000

= $8.00

hence, the initial selling price is $8 per unit

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<h3>Tax multiplier</h3>

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