Magpie Corporation Uses the Total Cost Concept of Product Pricing

question 134

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 cost per unit for the production and sale of the company's product is:

• A) $12.11
• B) $12.88
• C) $15
• D) $13.50

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Definitions:

Errors And Biases

Systematic deviations from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Cognitive Errors

Cognitive errors refer to systematic flaws or biases in human reasoning and perception that can lead to incorrect judgments, decisions, or interpretations.

Counterfactual Thinking

The psychological process of imagining alternative outcomes to events that have already occurred, often starting with "if only" scenarios.

Affective Forecasting

The ability to predict one’s emotional reactions to future events