Using the Variable Cost Method of Applying the Cost-Plus Approach

question 63

Essay

Using the variable cost method of applying the cost-plus approach to product pricing, determine the selling price for 30,000 units using the following data: variable cost per unit, $15.00; total fixed costs, $90,000; and desired profit, $150,000.

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Definitions:

Exploratory Research

A research approach used to investigate a problem or topic which is not clearly defined, aiming to gain insights and discover initial patterns.

Consumer Thoughts

Refers to the mental activities of individuals regarding their perceptions, attitudes, and decisions about products and services.

New Insights

Refers to fresh observations and discoveries that provide new understandings and perspectives, often leading to innovative solutions or strategies.

Internal Company Data

Information that a company collects from its own operations, including sales figures, financial records, and customer interactions, used for decision-making and strategic planning.