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Compute the selling price per unit

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Question - The Kipling Company has fixed costs of $400,000 and variable costs are 75% of the selling price. To realize profits of $100,000 from sales of 500,000 units, compute the selling price per unit?

a. must be $1.00

b. must be $1.33

c. must be $4.00

d. is indeterminable

Reference no: EM132667865

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