A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%? A. $75.00 B. $62.50 C. There is not enough information in the problem to answer. D. $67.50
A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%? A. $75.00 B. $62.50 C. There is not enough information in the problem to answer. D. $67.50
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Transcribed Image Text:A company has a total cost of $50.00 per unit at a volume of 100,000 units. The
variable cost per unit is $20.00.
What would the price be if the company expected a volume of 120,000 units and
used a markup of 50%?
A. $75.00
B. $62.50
C. There is not enough information in the problem to answer.
D. $67.50
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