XYZ Electronics operates a facility with annual fixed costs of $750,000 and production capacity of 250,000 units. Their product has a 30% contribution margin. If the company aims to achieve a profit of $375,000 at full production, what selling price per unit must they set?

XYZ Electronics operates a facility with annual fixed costs of $750,000 and production capacity of 250,000 units. Their product has a 30% contribution margin. If the company aims to achieve a profit of $375,000 at full production, what selling price per unit must they set?

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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General accounting question

XYZ Electronics operates a facility with annual fixed costs of $750,000 and
production capacity of 250,000 units. Their product has a 30% contribution
margin. If the company aims to achieve a profit of $375,000 at full production,
what selling price per unit must they set?

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