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The Madison Co Produces a Single Product If the Firm Sells 15,000 Units Per Period, What Price

Question 88

Multiple Choice

The Madison Co produces a single product. Its cost structure is:  Fixd Cast  Variable Cast per Unit  Manufacturing Casts $60,000$35 Nan-Manufacturing Casts $35,000$10\begin{array} { | l | c | c | } \hline & \text { Fixd Cast } & \text { Variable Cast per Unit } \\\hline \text { Manufacturing Casts } & \$ 60,000 & \$ 35 \\\hline \text { Nan-Manufacturing Casts } & \$ 35,000 & \$ 10 \\\hline\end{array} If the firm sells 15,000 units per period, what price should be charged to earn $65,000?


A) $55
B) $25
C) $50
D) $45

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