Clipper Office Furniture Uses Cost-Plus Pricing with a 40% Mark-Up

question 40

Multiple Choice

Clipper Office Furniture uses cost-plus pricing with a 40% mark-up on total cost at capacity.The company is currently selling 40,000 units at $19.60 per unit.Each unit has a variable cost of $9.In addition, the company incurs $200,000 in fixed costs annually.If demand falls to 32,000 units and the company wants to continue to earn a 40% return, what price should the company charge?

• A)$15.25
• B)$21.35
• C)$19.60
• D)$6.10

Identify and explain the motivations behind divestitures and their impact on a firm.

Comprehend the role of corporate defensive strategies in preventing hostile takeovers.

Understand the distinction between prejudice and discrimination and their effects in social interactions.

Recognize the importance of positive interaction patterns in maintaining successful relationships.

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Definitions:

Behavior Geneticist

A scientist who studies the genetic and environmental influences on behaviors, often through twin and adoption studies, to understand the heritability of traits.

Divorce Rates

A statistical measure representing the number of divorces that occur in a particular population during a specific period of time, often per year per 1,000 people.

Temperament

An individual's innate predisposition toward certain patterns of behavior and emotional reactions.

Anxious

Feeling or showing worry, nervousness, or unease about something with an uncertain outcome.