The Marietta Company Has Fixed Costs of $75,000 and Variable

question 81

Multiple Choice

The Marietta Company has fixed costs of $75,000 and variable costs are 75% of the selling price. To realize operating income of $10,000 from sales of 80,000 units, the selling price per unit ________. (Round the answer to the nearest cent.)

• A) must be $1.06
• B) must be $1.42
• C) must be $4.25
• D) must be $3.75