A manufacturer produces 200 units of a product at a total cost of $1,000. If the manufacturer wants to make a markup of 10 percent, the price per unit would be ________
A) $6.00
B) $5.50
C) $5.00
D) $4.50
E) $0.50
B
Explanation: B) This is an example of cost-based pricing. The average (or per unit) total cost is total cost, $1,000, divided by the number of units produced, 200, or $5. The markup is 10 percent, or $0.50. The cost-based price is $5.00 + $0.50 = $5.50.
Business
You might also like to view...
The last interest payment on a 12-year, 6%, $138,000, fully-amortized loan with annual payments will be less than the first interest payment
Indicate whether the statement is true or false.
Business
Frequency modulation is based on three concepts: frequency, period, and time
Indicate whether the statement is true or false
Business