Determine the price, Question: What is the price if a markup of 40% on total cost is used, Accounting Basics

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Determine the price

Problem:

A company has $45 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 106,000 units annually.

Required:

Question: What is the price if a markup of 40% on total cost is used to determine the price?

Note: Please show basic calculation

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Accounting Basics: Determine the price

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Accounting Basics: Determine the price

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