Total cost used to determine the price
Problem: A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?
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An analysis of similar products on the market suggests a price of $125.00 per unit. The company requires a profit of 0.19 of selling price. How much is the target cost per unit?
A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?
On the other hand, the company in China is willing to pay only $135 per unit. What will be the effect on profit of accepting the order?
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The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $0.85 per pound. Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated with Cooper?
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