Sean Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit of $10. Variable selling and administrative costs per unit are $5, while fixed selling and administrative costs per unit are $2. Sean Co. uses the variable cost approach with a markup percentage of 100%. What is the appropriate target selling price? a. $44.00 b. $45.00 c. $50.00 d. $70.00 e. $84.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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Sean Co. has variable manufacturing costs per unit of $20, and fixed
manufacturing cost per unit of $10. Variable selling and administrative
costs per unit are $5, while fixed selling and administrative costs per unit
are $2. Sean Co. uses the variable cost approach with a markup
percentage of 100%. What is the appropriate target selling price?
a. $44.00
b. $45.00
c. $50.00
d. $70.00
e. $84.00
Transcribed Image Text:Sean Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit of $10. Variable selling and administrative costs per unit are $5, while fixed selling and administrative costs per unit are $2. Sean Co. uses the variable cost approach with a markup percentage of 100%. What is the appropriate target selling price? a. $44.00 b. $45.00 c. $50.00 d. $70.00 e. $84.00
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