Answers
Total variable cost = 108,000 Units * $40 Per unit = $4,320,000 Total fixed costs = $1,200,000 Total costs = Total variable costs + Total fixed costs = $4,320,000+ $1.200.000 = $5,520,000 Mark-up amount = Total costs * 40% = $5,520,000 * 40% = $2,208.000 Total price = Total costs + Mark-up amount = $5,520,000+ $2,208,000 = $7,728,000 Price per unit = Total price / Number of units = $7,728.000 / 108,000 Units = $71.555555556 Per unit = $71.56 Per unit (Rounded)
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