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If demand falls to 40000 units and the company wants to

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The Radek Company uses cost-plus pricing with a 30% mark-up. The company is currently selling 80,000 units at $65 per unit. Each unit has a variable cost of $47. In addition, the company incurs $240,000 in fixed costs annually. If demand falls to 40,000 units and the company wants to continue to charge the same price what profit margin percent will the company earn?

A. 22.6%

B. 26.2%

C. 57.5%

D. 30%

Reference no: EM13394897

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