What price should the company charge

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Reference no: EM13263248

The Estrada Company uses cost-plus pricing with a 0.49 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $4.30. In addition, the company incurs $194,100 in fixed costs annually. If demand falls to 89,500 units and the company wants to continue to earn a 0.49 return, what price should the company charge?

Reference no: EM13263248

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