T Strikethrough Calculator Scratch Pad Pillar Co makes decorative candies which are made from a special organic blend of beeswax, botanical wax and scented oils. Currently Pillar Co only sells its candles in its domestic market. The company has collected the data relating to sales of its 90 gram Honey Bee candle, which is very popular in Pillar Co's home country of Zedland. This pricing analysis is as follows: Price per unit Quantity sold ('000 units) Variable cost per unit (5) Fixed cost per unit 5 100 (5) 2.00 2.00 (5) 4.00 96 4.17 92 2.00 4.35 88 2.00 4.55 84 2.00 4.76 10 80 2.00 5.00 Pillar Co is reviewing its pricing strategies and has decided to use the information relating to the Honey Bee candle to assess some of the company's possible pricing decisions. 6 7 8 9 021534 Close All P Bag for Review After the pricing analysis was complete, Pillar Co decided to apply a pricing strategy of variable cost PLUS 400% for the Honey Bee candle. What profit will it earn as a result of this pricing strategy (to the nearest 5'000)? S 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pillar Co makes decorative candles which are made from a special organic blend of
beeswax, botanical wax and scented oils. Currently Pillar Co only sells its candles in
its domestic market.
The company has collected the data relating to sales of its 90 gram Honey Bee
candle, which is very popular in Pillar Co's home country of Zedland. This pricing
analysis is as follows:
Variable cost per unit
Price per unit
($)
5
Quantity sold
('000 units)
Fixed cost per unit
100
($)
2.00
2.00
($)
4.00
6
96
4.17
92
2.00
4.35
88
2.00
4.55
2.00
4.76
84
80
10
2.00
5.00
Pillar Co is reviewing its pricing strategies and has decided to use the information
relating to the Honey Bee candle to assess some of the company's possible pricing
decisions.
7
8
9
Time Remaining 02:11:41
21 of 34
Close All P Flag for Review
After the pricing analysis was complete, Pillar Co decided to apply a pricing strategy of variable cost
PLUS 400% for the Honey Bee candle.
What profit will it earn as a result of this pricing strategy (to the nearest $'000)?
,000
Transcribed Image Text:Highlight T Strikethrough Calculator Scratch Pad Pillar Co makes decorative candles which are made from a special organic blend of beeswax, botanical wax and scented oils. Currently Pillar Co only sells its candles in its domestic market. The company has collected the data relating to sales of its 90 gram Honey Bee candle, which is very popular in Pillar Co's home country of Zedland. This pricing analysis is as follows: Variable cost per unit Price per unit ($) 5 Quantity sold ('000 units) Fixed cost per unit 100 ($) 2.00 2.00 ($) 4.00 6 96 4.17 92 2.00 4.35 88 2.00 4.55 2.00 4.76 84 80 10 2.00 5.00 Pillar Co is reviewing its pricing strategies and has decided to use the information relating to the Honey Bee candle to assess some of the company's possible pricing decisions. 7 8 9 Time Remaining 02:11:41 21 of 34 Close All P Flag for Review After the pricing analysis was complete, Pillar Co decided to apply a pricing strategy of variable cost PLUS 400% for the Honey Bee candle. What profit will it earn as a result of this pricing strategy (to the nearest $'000)? ,000
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