Cain Manufacturing produces 40,000 clocks at a total cost of $900,000. Total fixed costs are $400,000. If Cain increases production by 20% and uses a 50% markup, how much will the selling price per unit be? a. $49.35 b. $21.00 c. $31.50 d. $34.05

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
icon
Related questions
Question

account solution needed

Cain Manufacturing produces 40,000 clocks at a total cost of
$900,000. Total fixed costs are $400,000. If Cain increases
production by 20% and uses a 50% markup, how much will the
selling price per unit be?
a. $49.35
b. $21.00
c. $31.50
d. $34.05
Transcribed Image Text:Cain Manufacturing produces 40,000 clocks at a total cost of $900,000. Total fixed costs are $400,000. If Cain increases production by 20% and uses a 50% markup, how much will the selling price per unit be? a. $49.35 b. $21.00 c. $31.50 d. $34.05
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning