Ragtown Grill Uses Cost-Plus Pricing with a 40% Mark-Up

question 5

Multiple Choice

Ragtown Grill uses cost-plus pricing with a 40% mark-up.The company is currently selling 20,000 units annually, but has a capacity of 30,000 units.Each unit has a variable cost of $15.In addition, the company incurs $60,000 in fixed costs annually.For how much is the company selling each unit?

• A)$25.20
• B)$21.00
• C)$24.00
• D)$23.80

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Definitions:

Playgrounds

Outdoor areas designed for children to play, often equipped with recreational structures like slides and swings.

Researcher

A person who conducts academic or scientific studies to gain new knowledge and understanding in a specific field.

Interaction Variables

Variables that modify the relationship between other variables in the context of statistical analysis, showing how the effect of one variable depends on the level of another variable.

Dependent Variable

A variable in research that is expected to change as a result of manipulations in the independent variable.