Problem regarding variable cost per unit


A company has a total cost of $40.00 per unit at a volume of 120,000 units. The variable cost per unit is $25.00. What would the price be if the company expected a volume of 110,000 units and used a markup of 50%?

A. $60.00

B. $62.05

C. $41.36

D. $37.50

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Accounting Basics: Problem regarding variable cost per unit
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