DT Company Uses Cost-Plus Pricing and Has $30 Per Unit

question 83

Multiple Choice

DT Company uses cost-plus pricing and has $30 per unit in variable costs and $800,000 per year in fixed costs.Demand is estimated to be 200,000 units annually.What is the price if a markup of 30% on total cost is used to determine the price?

• A)$34.00
• B)$39.00
• C)$44.20
• D)$43.00

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