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Problem:

The Estrada Company uses cost-plus pricing with a 0.32 markup. The company is currently selling 100,000 units. Each unit has a variable cost of $3.80. In addition, the company incurs $184,400 in fixed costs annually.

Required:

Question: If demand falls to $76,000 units and the company wants to continue to earn a 0.32 return, what price should the company charge?

Note: Please answer in proper manner and show all computations

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91174215

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