Unit variable cost for making and selling tubs

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Reference no: EM131216060

Tubby’s Tubs has capacity to produce 10,000 tubs and expects to sell all it can make. Fixed costs are $300,000, and the unit variable cost for making and selling tubs is $50 per tub. At what price should Tubby sell each tub so that profits are 20% of total revenue? A. $62.50 B. $96.00 C. $100.00 D. $120.00

Reference no: EM131216060

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Unit variable cost for making and selling tubs : Tubby’s Tubs has capacity to produce 10,000 tubs and expects to sell all it can make. Fixed costs are $300,000, and the unit variable cost for making and selling tubs is $50 per tub. At what price should Tubby sell each tub so that profits are 20% of..

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