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What the selling price for a small tree house

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Reference no: EM133159785

Question - The Treehouse Company prices its treehouses based on a percentage mark-up on variable costs. The company's pricing policy is 50% mark-up on variable costs.

The cost of manufacturing one small treehouse is as follows:

Timber 15 square metres at $10 per metre $150

Direct labour 8 hours at $12 per hour $96

Other indirect variable costs $34

Supervisor wages $20

Required - What the selling price for a small tree house?

Reference no: EM133159785

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