Magpie Corporation Uses the Total Cost Method of Product Pricing

question 151

Multiple Choice

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000.​ ​
-The cost per unit for the production and sale of Magpie's product is

• A)$12.11
• B)$12.88
• C)$15.00
• D)$13.50

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Definitions:

Genetic Copy

A genetic copy refers to an organism or cell that has the exact same genetic makeup as another, essentially a synonym for a clone but often used in the context of molecular genetics.

Johannes Miescher

A Swiss biologist who discovered nucleic acids, thus laying the groundwork for the field of molecular biology.

Isolate DNA

The process of separating DNA from other cellular components to study its structure, function, or for genetic engineering purposes.

Replication Error

Mistakes that occur during the DNA replication process, potentially leading to mutations if not corrected by DNA repair mechanisms.