David Tan, sales director, of Pubs Toy Ltd, negotiated with a new customer on the volume and
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David Tan, sales director, of Pub’s Toy Ltd, negotiated with a new customer on the volume and selling price of its popular product – Monster Craz. David has been informed of the costs of manufacturing the product – variable production cost $15 each and fixed production overhead $4,000,000 for the expected volume between 40,000 units and 80,000 units. Selling and administrative variable and fixed expenses are $3 per unit and $40,000 for the same expected volume range. David expected to sell 50,000 units of Monster Craz.
How much is the minimum price for the deal, if a minimum targeted profit of $500,000 is expected?
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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