Please given correct answer general accounting NDB Company has a factory with fixed costs of $500,000 anda production capacity of 150,000 units annually. Its productsells with a 30% contribution margin. The target profit is$300,000. At full production, what does the selling price perunit need to be? Show your complete solution.

To determine the selling price per unit, we need to calculate the total revenue required to meet the…

Answered: NDB Company has a factory with fixed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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NDB Company has a factory with fixed costs of $500,000 and a production capacity of 150,000 units annually. Its product sells with a 30% contribution margin. The target profit is $300,000. At full production, what does the selling price per unit need to be? Show your complete solution.