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

Relate the concepts of marginal and average products to decision-making in production.

Understand how the law of diminishing marginal returns impacts total production.

Understand the concept and applications of satisficing in decision making.

Recognize the impact of option quantity on decision quality and purchaser satisfaction.

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Definitions:

ANOVA F Statistic

A statistic used in Analysis of Variance (ANOVA) tests to determine if there are significant differences between the means of three or more groups.

Significance Level

A threshold chosen by the researcher which the p-value must be below in order to reject the null hypothesis.

Explanatory Variables

Variables in a statistical model that are used to predict or explain changes in the dependent variable.

Deaths

The occurrence of the permanent cessation of all vital functions in a living organism, marking the end of life.