If a product costs $100 to produce,the firm expects 15% margin on the cost to produce and transportation per unit costs $5,what is the least price the firm is likely to accept for the product?

Question

Quizplus · Accepted Answer

The firm expects a 15% margin on the production cost, which is $100. So, the margin is $15. Adding the transportation cost of $5, the least price the firm would accept is $100 + $15 + $5 = $120.

If a Product Costs $100 to Produce,the Firm Expects 15