Uses cost-plus pricing-what price should the company charge

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Reference no: EM13932983

The Estrada Company uses cost-plus pricing with a 0.42 markup. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $3.80. In addition, the company incurs $179,700 in fixed costs annually. If demand falls to 74,600 units and the company wants to continue to earn a 0.42 return, what price should the company charge?

Reference no: EM13932983

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Uses cost-plus pricing-what price should the company charge : The Estrada Company uses cost-plus pricing with a 0.42 markup. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $3.80. In addition, the company incurs $179,700 in fixed costs annually. If demand falls t..

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