Using cost-plus pricing what is the cost per unit and the


Question - A company must incur annual fixed costs of $4,000,000 and variable costs of $400 per unit and estimates that it can sell 40,000 pumps annually and marks up cost by 30 percent. Using cost-plus pricing, what is the cost per unit and the price? What are advantages and disadvantages of cost-plus pricing?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Using cost-plus pricing what is the cost per unit and the
Reference No:- TGS02691723

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)