NDB Company has a factory with fixed. costs of $650,000 and a production capacity of 225,000 units annually. Its product sells with a 36% contribution. margin. The target profit is $470,000. At full production, what does the selling price per unit need to be? Show your complete solution.

NDB Company has a factory with fixed. costs of $650,000 and a production capacity of 225,000 units annually. Its product sells with a 36% contribution. margin. The target profit is $470,000. At full production, what does the selling price per unit need to be? Show your complete solution.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

Solve this Accounting problem

NDB Company has a factory with fixed.
costs of $650,000 and a production
capacity of 225,000 units annually. Its
product sells with a 36% contribution.
margin. The target profit is $470,000. At
full production, what does the selling
price per unit need to be? Show your
complete solution.

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NDB Company has a factory with fixed costs of $650,000 and a production capacity of 225,000 units annually. Its product sells with a 36% contribution margin. The target profit is $470,000. At full production, what does the selling price per unit need to be? Show your complete solution. Give me answer
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