Yummy Foods sells jars of special spices used in Spanish cooking. The variable cost is $1 per
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Yummy Foods sells jars of special spices used in Spanish cooking. The variable cost is $1 per unit. Fixed costs are $9,000,000 per year. It has $40,000,000 of assets, and investors expect a return of 5% on their assets. Yummy Foods sells 5,000,000 units per year. They use cost-plus pricing because they are the only company which produces this kind of product.
Using cost-plus pricing methodology, determine the price per unit.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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