Question: Section A: Multiple Choice Questions Marks: 30 Q1. Trailer Traders wishes to earn a 30% return on its $100 000 investment in equipment used to
Section A: Multiple Choice Questions Marks: 30 Q1. Trailer Traders wishes to earn a 30% return on its $100 000 investment in equipment used to produce trailers. Based on estimated sales of 10,000 trailers next year, the costs per trailer would be as follows: Variable cost Fixed Selling and administrative costs Fixed manufacturing cost $50 $20 $10 Using cost-based pricing how much should each trailer be priced at? A) $83 B) $90 c) $120 D) None of these Enter correct choice & provide justification for your choice in the space box below (2 marks)
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