Using the Variable Cost Concept,determine the Selling Price for 30,000

question 89

Essay

Using the variable cost concept,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:

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making by enabling quicker judgments with less effort but potentially at the expense of accuracy.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Representative Heuristic

A cognitive bias in which an individual categorizes a situation based on how similar it is to their prototype of a particular event or behavior, often leading to errors in decision making or judgment.

Stroop Effect

A psychological phenomenon that demonstrates the interference in reaction time when the name of a color is printed in a color not denoted by the name.