A Company Uses Cost-Plus Pricing and Has a Total Cost

question 115

Multiple Choice

A company uses cost-plus pricing and has a total cost of $40.00 per unit at a volume of 120,000 units.The variable cost per unit is $25.00.What will the price be if the company expects a volume of 110,000 units and uses a markup of 50%?

• A)$41.36
• B)$62.05
• C)$37.50
• D)$60.00

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Definitions:

Subbranding

The practice of creating a secondary brand within a main brand to appeal to different market segments or highlight particular product qualities.

Corporate Brand

The overall identity of a corporation that reflects its values, reputation, and products, recognized and valued by consumers.

Product Line

A range of related products offered by a single company, designed to serve different customer needs while maintaining a certain standard or characteristic.