Question: A custom tailor wishes to use cost - plus pricing to establish a price for a custom - designed business suit. Assume variable cost is

A custom tailor wishes to use cost-plus pricing to establish a price for a custom-designed business suit. Assume variable cost is $250 per suit (no fixed cost), and the target profit is $5,000 based on a volume of 50 suits. Then what price should be charged for one typical custom suit?
Group of answer choices
$250
$300
$350
$500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!