The Rising Sun Manufacturing is considering production of a digital weather station that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the weather station will be $45 per unit and fixed costs per year will be $180,000. Assuming sales of 1,500 units, what is the full selling price of a weather station with a 0.30 markup?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per...
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The Rising Sun Manufacturing is considering production of a digital
weather station that the company would price at a markup of 0.30 above full
cost. Management estimates that the variable cost of the weather station will
be $45 per unit and fixed costs per year will be $180,000. Assuming sales of
1,500 units, what is the full selling price of a weather station with a 0.30
markup?
Transcribed Image Text:The Rising Sun Manufacturing is considering production of a digital weather station that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the weather station will be $45 per unit and fixed costs per year will be $180,000. Assuming sales of 1,500 units, what is the full selling price of a weather station with a 0.30 markup?
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