NovaTech Inc. has $42 per unit in variable costs and $1,600,000 in fixed costs per year. Annual demand is 80,000 units. What is the selling price per unit if a 25% markup on total cost is used to determine the price? a. $52.50 b. $60.25 c. $77.50 d. $69.75

NovaTech Inc. has $42 per unit in variable costs and $1,600,000 in fixed costs per year. Annual demand is 80,000 units. What is the selling price per unit if a 25% markup on total cost is used to determine the price? a. $52.50 b. $60.25 c. $77.50 d. $69.75

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 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Please provide the accurate answer to this general accounting problem using valid techniques.

NovaTech Inc. has $42 per unit in variable costs and $1,600,000 in fixed
costs per year. Annual demand is 80,000 units.
What is the selling price per unit if a 25% markup on total cost is used to
determine the price?
a. $52.50
b. $60.25
c. $77.50
d. $69.75

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