The pure company utilizes cost-plus pricing with a 50

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The Pure Company uses cost-plus pricing with a 50% mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6. In addition, the company incurs $200,000 in fixed costs annually. If demand falls to 80,000 units and the company wants to continue to earn a 50% return, what price should the company charge?

a) $12.75

b) $14.55

c) $13.50

d) $10.95

Reference no: EM13477991

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