What price should the company charge?

Nov 27th, 2015
FratBro23
Category:
Accounting
Price: $5 USD

Question description

The Estrada Company uses cost-plus pricing with a 0.37 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $4.00. In addition, the company incurs $190,300in fixed costs annually. If demand falls to72,600 units and the company wants to continue to earn a 0.37 return, what price should the company charge?

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Rice University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

Summary
Quality
Communication
On Time
Value
ddg82
Mar 30th, 2017
" Thanks, good work "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1830 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors