Problempanoramic paddleboards is considering the production, Ask an Expert

Accounting

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Panoramic Paddleboards is considering the production of a new, sleeker designed paddleboard. They will price it at a 30% markup. Variable cost per board is estimated at $110. Annual total fixed costs per year will be $58,000.

a. Calculate the sales price assuming an estimated demand of 1,200 boards

b. Calculate the sales price assuming an estimated demand of 800 boards.

c. Explain the difference and discuss why this method creates a circular problem for the manufacturer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92793669

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