Assume a Manufacturer with Fixed Costs of $100,000,a Variable Cost

question 64

Multiple Choice

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

• A)$14
• B)$18
• C)$15
• D)$18.50
• E)none of the above

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Definitions:

Observational Study

A study based on data in which no manipulation of factors has been employed.

Multistage Design

A sampling method involving multiple stages of selection, typically used in large-scale surveys to efficiently gather data.

Statistically Significant

A result is said to be statistically significant if it is unlikely to have occurred by chance alone, according to a predetermined threshold of significance.

Response Variable

In statistics, the variable that measures the outcome of a study or experiment.