pROBLEM:
The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.25 above full cost. Management estimates that the variable cost of the globe will be $64 per unit and fixed costs per year will be $240,000. Assume that the quantity demanded at the price calculated in part a is only 600 units.
Required:
Question: What is the full cost of the globe with a 0.25 markup?
Note: Please provide reasons to support your answer.