Question: A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of production as

A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of production as $33/unit. If only 5000 units is all that is expected to sell to the government this year what should the per unit selling price be to make a 25% profit overall this year on this activity? [Profit = Revenues - Costs; where Revenues = (# units sold)(unit sales price)]

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 Economics Questions!

A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of production as $33. (a) If only 5000 units is all that is expected to...

if the traget operation income is $50 000 for an annual volume of 7,500 units ,the total annual fixed costs are $240,000 and the variable cost per unit is $95, then what is the average markup...

Evaluating an Outsourcing Decision Epson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail - order distributors for \ ( \ $ 5 . 2 0 \ ) each. Total fixed costs per...

Evaluating an Outsourcing Decision Epson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail - order distributors for $ 5 . 2 0 each. Total fixed costs per year are $ 3...

Epson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail - order distributors for $ 5 . 2 0 each. Total fixed costs per year are $ 3 4 2 , 0 0 0 . Variable cost per...

Margin income statement questjon? tese LUpanies use the cost behavior information requested? 42. Account Analysis and Contribution Margin Income Statement. Downhill Company would like to estimate...

The following total cost data are for Ralston Manufacturing Company, which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular...

Business Decision Case The following total cost data are for Ralston Manufacturing Company, which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the...

Untitled 2 Account Analysis and Contribution Margin Income Statement.Downhill Company would like to estimate costs associated with its production of bike helmets on a monthly basis. The accounting...

On June 30, 2023, Cargo Group issued $800,000 of 5%, semiannual 30-year bonds payable for cash of $939,040. The market rate was 4%. A. Prepare a bond amortization table through the first 4 interest...

r 0.751 (x = weight of discarded plastic, y = household size) Use the value of the linear correlation coefficient r to find the coefficient of determination and the percentage of the total variation...

Identify one advantage of putting the family cottage in a trust

One of Tonic Corps employees invented a revolutionary coffee lid that cools coffee as you drink it in order to prevent burns. Two children ordered coffee and burned their mouths after failing to...

Bob has preferences over consumption in period 0 and 1 of the form U(x, y) = xy, where x and y are Bob's consumption in period 0 and 1 respectively. He has $15,000 in the bank now and is trying to...

On January 1, 2019, Portugal Corporation bought 100% of the stock of Sweden Corporation for $500,000 (with cash). The Balance Sheets of the two companies immediately after Portugal acquired (January...

Julia Used Cars offers a one-year warranty from the date of sale on all cars it sells. From historic data, Bill Julia estimates that, on average, each car will require the company to incur warranty...

Refer to the facts in the attached case, then prepare an income statement and balance sheet for each company for 2019. Prepare your financial statements in Excel, although any legible submission will...

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

4. I try to make them feel what I really mean (1 is related to the visionary, 2 to the logical, 3 to action and 4 to the emotional).

4. What is the goal of the others in the network?

2. What we can learn from the past