Loopy Company Had the Following Information: at a Manufacturing Level

question 56

Multiple Choice

Loopy Company had the following information: At a manufacturing level of 5,000 units, variable and fixed manufacturing costs are $32 and $20 per unit, respectively.Selling price is $70 per unit._____ is the total manufacturing cost for 10,000 units.

• A)$250,000
• B)$700,000
• C)$420,000
• D)None of these answers is correct

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Definitions:

Odd Pricing

A pricing strategy that sets prices at odd numbers just below round numbers to make them appear smaller and more appealing to buyers.

Cost-Based Pricing

Formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.

Personal Selling

A direct form of marketing that involves a salesperson presenting the benefits of a product directly to a customer in order to make a sale.