Company A sells T-shirts and uses life cycle pricing to determine the selling price of the...

 

Transcribed Image Text:

Company A sells T-shirts and uses life cycle pricing to determine the selling price of the T-shirts. Costs include: variable costs at $65 per T-shirt and fixed cost per month of $12,000. They plan on producing and selling 1,000 T-shirts in one month. They will mark up their costs by 45%. What is the selling price for one of their T shirts? Show your work. VC 65.00 fixed C ####### 9 1,000.00 45% SP Q=VOQ+FC SP 0-(VC Q+FC)= Selling Price per Unit ? Company B sells two types of water bottles and uses life cycle pricing to determine the selling price of the water bottles. Water Bottle #1has a variable costs at $35 per bottle and fixed cost per month of $1,750 that only applied to Water Bottle #1 Water Bottle # 2 has a variable costs at $42 per bottle and fixed cost per month of $2,000 that only applied to Water Bottle #2. They plan on producing and selling 2,500 Water Bottle #1 and 1,900 Water Bottle #2 in a month. They will mark up their costs by 45%. What is the selling price for each water bottle? Show your work. Company A sells T-shirts and uses life cycle pricing to determine the selling price of the T-shirts. Costs include: variable costs at $65 per T-shirt and fixed cost per month of $12,000. They plan on producing and selling 1,000 T-shirts in one month. They will mark up their costs by 45%. What is the selling price for one of their T shirts? Show your work. VC 65.00 fixed C ####### 9 1,000.00 45% SP Q=VOQ+FC SP 0-(VC Q+FC)= Selling Price per Unit ? Company B sells two types of water bottles and uses life cycle pricing to determine the selling price of the water bottles. Water Bottle #1has a variable costs at $35 per bottle and fixed cost per month of $1,750 that only applied to Water Bottle #1 Water Bottle # 2 has a variable costs at $42 per bottle and fixed cost per month of $2,000 that only applied to Water Bottle #2. They plan on producing and selling 2,500 Water Bottle #1 and 1,900 Water Bottle #2 in a month. They will mark up their costs by 45%. What is the selling price for each water bottle? Show your work.

Answer rating: 100% (QA)

SOLUTION To calculate the selling price for the Tshirts in Company A we can use the following formul... View the full answer