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Company uses cost-plus pricing with a 50 mark-up the

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Company uses cost-plus pricing with a 50% mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6. In addition, the company incurs $200,000 in fixed costs annually. If demand falls to 80,000 units and the company insists on a 50% mark-up, what price should the company charge?

Reference no: EM13612082

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