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:

Suicide

Death caused by self-directed injuries with the intent to die.

Principal

The most important or leading person in an organization, group, or institution.

Cliques

Cliques are small, exclusive groups of individuals who share common interests, often forming tight-knit social circles within larger social settings.

Crowds

Social groups that individuals, especially adolescents, identify with or are identified by, which influence behaviors, attitudes, and self-perception.