Typical cabinet selection


A custom-kitchen cabinet store owner wishes to use target profit pricing to establish a price for a typical section of cabinets. Assume the following:

* variable cost is $200 per unit

* fixed cost is $44,000

* a target profit of $10,000 on a volume of 400 cabinets is desired

What should be charged for a typical cabinet selection?

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Business Management: Typical cabinet selection
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