What price should the company charge, Accounting Basics

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What price should the company charge

The Dynamaco Company uses cost-plus pricing with a 50% mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6. In addition, the company incurs $200,000 in fixed costs annually. If demand falls to 80,000 units and the company insists on a 50% mark-up, what price should the company charge?

a. $12.75

b. $14.55

c. $13.50

d. $10.95

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Accounting Basics: What price should the company charge

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Recent Questions Asked Accounting Basics

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Ask an Expert for Answer!!

Accounting Basics: What price should the company charge

Reference No:- TGS065454

Recent Questions Asked Accounting Basics

Q : What are the four parts of cost hierarchy

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Q : Overall profit of processing and selling the material

Q : Total cost used to determine the price

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