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pROBLEM:

The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.25 above full cost. Management estimates that the variable cost of the globe will be $64 per unit and fixed costs per year will be $240,000. Assume that the quantity demanded at the price calculated in part a is only 600 units.

Required:

Question: What is the full cost of the globe with a 0.25 markup?

Note: Please provide reasons to support your answer.

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Category:- Basic Finance
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