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, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data:
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, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data: 
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, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data: 
A)$10 
B)$15 
C)$8 
D)$23

Flyer Company Sells a Product in a Competitive Marketplace