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Full cost

The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.30 percent above full cost. Management estimates that the variable cost of the globe will be $68 per unit and fixed costs per year will be $240,000.
Assuming sales of 1,200 units, what is the full cost of a globe with a 0.30 markup?

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Solution Summary

The solution computes the full cost per unit.

$2.19