The Sierra Company Produces Its Product at a Total Cost

question 30

Essay

The Sierra Company produces its product at a total cost of $89 per unit.Of this amount,$14 per unit is selling and administrative costs.The total variable cost is $58 per unit and the desired profit is $28 per unit.
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Determine the markup percentage using the (a)total cost,(b)product cost,and (c)variable cost concept.

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Definitions:

Differential Threshold

The smallest detectable difference between two stimuli or the minimum change in intensity that a person can detect.

Marketers

Professionals or organizations responsible for promoting, selling, and distributing products or services to customers.

Absolute Threshold

The minimum stimulus intensity that an organism can detect half the time.

Perception

The process by which individuals organize and interpret sensory information from their environment to understand and interact with the world around them.