Question 2 (1 point) The Falling Snow Company is considering production of a lig

Question

Question 2 (1 point) The Falling Snow Company is considering production of a lighted world globe that the company would price at a m 0.25 above full cost. Management estimates that the variable cost of the globe will be 564 per unit and fixed costs p be $240,000. Assuming sales of 1,200 units, what is the futl selling price of a globe with a 0.25 markup? Your Answer: Answer Save Question 3 (1 point 5cc ooo of its proposed new optical mouse at a price of $10.00 each There wil e 5c eves it can sell 5 ed with the mouse. If the company desires to make a profit $2.000,000 on the mouse, what is the targer va riase cosuzsewthe a rabie cos per mouse

Explanation / Answer

Ans:

Cost to company for producing 1200 units

=variable cost+fixed cost

=1200*64+240000

=316800

Now,with 25% margin=1.25*316800=3,96,000

So,full selling price of a globe=396000/1200=330

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