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
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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
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