(Answered) Planet view is considering production of a lighted world

Accounting

Planet View is considering production of a lighted world globe that the company would price at a markup of 20 percent above full cost. Management estimates that the variable cost of the globe will be $50 per unit and fixed cost per year will be #100,000.

Required:

(a) Assuming sales of 1,000 units, what is the full cost of a globe and what is the price with a 20 percent markup?

(b) Assume that the quantity demanded at the price calculated in part a is only 500 units. What is the full cost of the globe and what is the price with a 20 percent markup?

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