Mail-order business for kitchen equipment

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Reference no: EM13969079

This is a mail-order business for kitchen equipment. Annual demand for its best seller item is 25,000 units. This best seller item is sold at $350/unit, including shipping and handling. It has an earning markup of 20%. The annual holding cost per unit for this best seller is $5.50. The cost to process an order of this item is $25. It takes ten (10) days to completely process an order. Assume that the year has 360 days.

What should be the cost per unit for this best seller if it is sold at $350 with an earning markup of 20%?

Reference no: EM13969079

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