Magic Fun Has Total Fixed Costs of $4,000,000 and Total

question 12

Multiple Choice

Magic Fun has total fixed costs of $4,000,000 and total variable cost of $2,000,000 during a month when it sold 200,000 units.What price will Magic Fun charge if it uses cost-plus pricing and a markup of 20%?

• A)$30.00
• B)$24.00
• C)$36.00
• D)$48.00

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Definitions:

School-Age Children

Children between the ages of about 5 and 12, during which they are typically enrolled in elementary or primary education.

Intellectual Skills

Abilities related to thinking, understanding, learning, and problem-solving.

Ethic Of Caring

A moral framework that emphasizes interpersonal relationships and compassion as the foundation of ethical decision-making.

Character Education

The teaching of moral and ethical values in schools, aiming to develop responsible and virtuous individuals.