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:

Tissue Capillaries

The smallest blood vessels in the body, located within the tissues, where gas and nutrient exchange occur.

Oxygen

A chemical element with symbol O and atomic number 8, essential for most life forms on Earth as a critical component of the air we breathe.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Largest Cartilage

The thyroid cartilage, better known as the Adam’s apple, is the largest cartilage in the larynx or voice box.