Selling price per unit based problem


Question: Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computer by adding a 20% markup to full cost.

How much should the selling price be per unit for 300,000 units?

  • $49
  • $43.75
  • $42.
  • $35

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Accounting Basics: Selling price per unit based problem
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