Using the product cost concept, determine the selling price for 30,000 units using the following data: product cost per unit, $15.00; total period costs, $90,000; and desired profit, $150,000. Round the markup percentage to one decimal place and markup to nearest dollar.

Total Product Costs = $Choose...23.0015.007.008.0010.00 x Choose...25,00020,00030,000 = $Choose...150,000120,000450,00090,000250,000

Markup Percentage = (Desired Profit + Total Period Costs) / Total Product Costs

= ($Choose...150,000120,000450,00090,000250,000 + $Choose...150,000120,000450,00090,000250,000 ) / $Choose...150,000120,000450,00090,000250,000

= Choose...53.3%42.0%20.0%33.3%

Mark up = $Choose...23.0015.007.008.0010.00 x Choose...53.3%42.0%20.0%33.3% = $Choose...23.0015.007.008.0010.00

Selling Price = $Choose...23.0015.007.008.0010.00 + $Choose...23.0015.007.008.0010.00 = $Choose...23.0015.007.008.0010.00   

Please help, last question was not answered right.

 

Answer rating: 100% (QA)

1 Calculate Total Product Costs Product cost per unit Number of units 1500unit 30000 u... View the full answer