Flyer Company Sells a Product in a Competitive Marketplace

question 19

Multiple Choice

Flyer Company sells a product in a competitive marketplace.  Market analysis indicates that its product would probably sell at $48 per unit.  Flyer management desires a 12.5% profit margin on sales.  Their current full cost for the product is $44 per unit.
What is the desired profit per unit?

• A) $6
• B) $8
• C) $5
• D) $4

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