The estrada company uses cost-plus pricing with a 031, Financial Management

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The estrada company uses cost-plus pricing with a 031

The Estrada Company uses cost-plus pricing with a 0.31 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $4.40. In addition, the company incurs $182,400 in fixed costs annually. If demand falls to 76,100 units and the company wants to continue to earn a 0.31 return, what price should the company charge?

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Financial Management: The estrada company uses cost-plus pricing with a 031

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Financial Management: The estrada company uses cost-plus pricing with a 031

Reference No:- TGS01419262

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