What price should the company charge

Reference no: EM13263240

Jelly Heaven Company uses cost-plus pricing with a 0.40 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $4.70. In addition, the company incurs $191,900 in fixed costs annually. If demand falls to 86,900 units and the company wants to continue to earn a 0.40 return, what price should the company charge?

Reference no: EM13263240

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