Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15 per hour to assemble the lures, which each require 0.10 hours to make. There are no other costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling price per unit?
Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15 per hour to assemble the lures, which each require 0.10 hours to make. There are no other costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling price per unit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jim's Bait Shop makes their own fishing lures. They buy the materials necessary to make the
lures for $0.20 per ounce. Each lure requires 1 ounce of materials. They pay their workers $15
per hour to assemble the lures, which each require 0.10 hours to make. There are no other
costs. They price the lures adding a markup of 50% of manufacturing cost. What is the selling
price per unit?
$2.55
O $1.70
O $2.25
O There is not enough information provided to calculate the price.
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