Pinkin Inc.needs to determine a price for a new phone model.Pinkin desires a 25% markup on the total cost of the phone.Pinkin expects to sell 30,000 phones.Additional information is as follows:
$$\begin{array}{l}
\begin{array} { l l r }
\text { Variable product cost per unit}&\$75\
\text { Variable administrative cost per unit}&50\
\text { Total fixed overhead}&85,000\
\text { Total fixed administrative}&65,000
\end{array}
\end{array}$$ Using the total cost method what price should Pinkin charge?
A)$156.10
B)$162.50
C)$130.10
D)$142.50
E)$161.25

Question

Pinkin Inc.needs to determine a price for a new phone model.Pinkin desires a 25% markup on the total cost of the phone.Pinkin expects to sell 30,000 phones.Additional information is as follows: 
$$\begin{array}{l}
\begin{array} { l  l r } 
\text { Variable product cost per unit}&\$75\
\text { Variable administrative cost per unit}&50\
\text { Total fixed overhead}&85,000\
\text { Total fixed administrative}&65,000
\end{array}
\end{array}$$ Using the total cost method what price should Pinkin charge?
A)$156.10
B)$162.50
C)$130.10
D)$142.50
E)$161.25

Quizplus · Accepted Answer

The Answer of Pinkin Inc.needs to determine a price for a new phone model.Pinkin desires a 25% markup on the total cost of the phone.Pinkin expects to sell 30,000 phones.Additional information is as follows: 
$$\begin{array}{l}
\begin{array} { l  l r } 
\text { Variable product cost per unit}&\$75\
\text { Variable administrative cost per unit}&50\
\text { Total fixed overhead}&85,000\
\text { Total fixed administrative}&65,000
\end{array}
\end{array}$$ Using the total cost method what price should Pinkin charge?
A)$156.10
B)$162.50
C)$130.10
D)$142.50
E)$161.25

Pinkin Inc Using the Total Cost Method What Price Should Pinkin Charge