Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.
-Using the variable cost method, the markup per unit for 30,000 units (rounded to the nearest dollar) using the following data is Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
A)$10
B)$15
C)$8
D)$23

Question

Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.​
-Using the variable cost method, the markup per unit for 30,000 units (rounded to the nearest dollar) using the following data is Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
A)$10
B)$15
C)$8
D)$23

Quizplus · Accepted Answer

The Answer of Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.​
-Using the variable cost method, the markup per unit for 30,000 units (rounded to the nearest dollar) using the following data is Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
A)$10
B)$15
C)$8
D)$23

Flyer Company Sells a Product in a Competitive Marketplace