Harding, Inc., prices its main product by adding 30% to the manufacturing cost per unit. Hardings variable
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Question:
Harding’s variable manufacturing costs are $12 per unit, variable selling and administrative costs are $1 per unit, and fixed manufacturing costs per quarter total $2,000,000. Anticipated quarterly sales were 50000 units Harding’s market has become more competitive with similar companies offering a selling price of $60 per unit. This has resulted in decreased demand for Harding’s product causing actual quarterly sales to be 40000 units Harding’s selling price per unit for the next quarter should be
$80.6$66.6$63$60
Related Book For
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp
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