Magpie Corporation Uses the Total Cost Concept of Product Pricing

question 76

Multiple Choice

Magpie Corporation uses the total cost concept 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% rate of return on invested assets of $700,000. The unit selling price for the company's product is

• A) $15.00
• B) $13.82
• C) $15.79
• D) $14.76

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Definitions:

Electroconvulsive Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Prefrontal Lobotomy

A surgical procedure once used to treat mental disorders, involving the removal or severing of connections to the prefrontal cortex of the brain, now largely discredited due to its severe side effects and ethical issues.

Psychodynamic Therapy

A therapeutic approach that emphasizes unconscious processes and past experiences in shaping current behavior.

Unconscious Processes

Mental activities beyond conscious awareness, influencing perceptions, judgments, and feelings without our explicit understanding.