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Davis Company Has $20 Per Unit in Variable Costs and $800,000

Question 20

Multiple Choice

Davis Company has $20 per unit in variable costs and $800,000 per year in fixed costs.Demand is estimated to be 400,000 units per year.What is the desired price per unit if a markup of 30% on total cost is used to determine the price?


A) $26.00
B) $37.40
C) $28.60
D) $34.00
E) None of the answer choices is correct.

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