Selling price per unit
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Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computer by adding a 20% markup to full cost.
How much should the selling price be per unit for 300,000 units?
$49
$43.75
$42.
$35
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The solution explains how to calculate the selling price per unit.
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Total cost is variable cost per unit + fixed cost per ...
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