Using the variable cost method of applying the cost-plus approach to product pricing, determine the selling price for 22,500 units using the following data: variable cost per unit, $15; total fixed costs, $180,000; and desired profit, $225,000. Do not round intermediate calculations. Round your answer to the nearest whole dollar.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...
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Using the variable cost method of applying the cost-plus approach to product pricing, determine the selling price for 22,500 units using the following data: variable cost
per unit, $15; total fixed costs, $180,000; and desired profit, $225,000. Do not round intermediate calculations. Round your answer to the nearest whole dollar.
Transcribed Image Text:Using the variable cost method of applying the cost-plus approach to product pricing, determine the selling price for 22,500 units using the following data: variable cost per unit, $15; total fixed costs, $180,000; and desired profit, $225,000. Do not round intermediate calculations. Round your answer to the nearest whole dollar.
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