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The forecast costs per unit for a new product are as follows:
The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.
What would be the selling price per unit?
Suggested Answer: D
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39 comments · newest first
AL
Alease
12 months ago
Yeah, B feels like the best choice here!
HE
Herminia
12 months ago
Wait, are we sure about those cost figures?
LO
Lorrie
1 year ago
I calculated it, and I think it's actually option C.
VA
Vallie
1 year ago
Definitely going with option B, seems right!
LU
Lucy
1 year ago
The margin is 40%, so selling price should be higher than cost.
DE
Denny
1 year ago
I feel confident about the formula, but I might be mixing up the costs per unit. I hope I remember the right figures!
JO
Josephine
1 year ago
I think the selling price is based on the marginal cost plus the desired margin, but I can't recall how to apply the 40% margin correctly.
MI
Mickie
1 year ago
This question seems similar to one we practiced where we had to add a margin to the total costs. I think I need to double-check my calculations.
RE
Ressie
1 year ago
I remember we calculated selling prices using the cost plus margin method in class, but I'm not sure if I got the margin percentage right.
LE
Leah
1 year ago
This question seems straightforward - RDMA is known to improve communication speed, so I'll go with option A.
JA
Jacqueline
1 year ago
Okay, let's see. The question mentions that the servers are in the DMZ, so that's an important clue. I'm going to read through the options carefully and try to eliminate the ones that don't make sense.
EL
Ellsworth
1 year ago
I'm leaning towards D. "Own, Subordinate, and Unassigned" sounds like it would give the Support Manager the broadest access to view cases, which seems like the right approach.
EI
Eileen
1 year ago
Wait, what? 40% margin? That's a lot of profit! I wonder if the company is planning to dominate the market or something. Anyway, let me work this out... Ah, option B) $46.20 seems legit.
ST
Staci
1 year ago
That's a good margin for the company. $46.20 it is.
DE
Dean
1 year ago
Yeah, I agree. Option B) $46.20 looks like the correct answer.
LE
Lewis
1 year ago
I think the selling price per unit is $46.20.
TR
Troy
1 year ago
This is a classic pricing strategy question. I just need to remember the formula and plug in the numbers. Piece of cake! I'll go with option C) $45.00. That's my final answer, host.
AS
Ashlee
1 year ago
I believe the selling price per unit would be $45.00. That's my final answer.
TY
Ty
1 year ago
So, what do you think the selling price per unit would be?
KR
Kristian
1 year ago
I think you're on the right track. Remember, the formula is marginal cost plus pricing with a 40% margin.
AN
Annita
2 years ago
Okay, so the total cost per unit is $33. If we need a 40% margin, that means the selling price should be 140% of the total cost. Time to crunch the numbers! I'm going with option B) $46.20.
LA
Lawrence
1 year ago
The selling price per unit is $46.20. Good job!
RO
Rocco
1 year ago
Let's calculate it together to be sure.
ME
Melinda
1 year ago
I agree, option B) $46.20 seems to be the correct choice.
MA
Maryanne
1 year ago
I think the selling price per unit should be $46.20.
FR
Franchesca
1 year ago
Great, let's go with option B) $46.20 as the selling price per unit.
PA
Paola
1 year ago
So, 140% of $33 is $46.20, option B) seems to be the correct answer.
RO
Rosina
1 year ago
I agree, let's calculate it to be sure.
TR
Tran
1 year ago
I think you're right, the selling price should be 140% of the total cost.
LE
Leatha
2 years ago
Hmm, let's see. If the company uses marginal cost plus pricing and requires a 40% margin, then the selling price should be calculated based on the total cost per unit. This seems to be a straightforward math problem, but I better double-check my work just in case.
YU
Yuonne
1 year ago
I'm not sure about B) $46.20, I think it might be too high based on the cost per unit and the required margin.
FE
Felicidad
1 year ago
B) $46.20
EL
Eleonora
1 year ago
User 2
KI
Kimi
1 year ago
I think it's A) $37.80 because the selling price needs to cover the total cost per unit plus the 40% margin.
RE
Reita
1 year ago
A) $37.80
FL
Florinda
1 year ago
User 1
AL
Alberta
2 years ago
I'm not sure, but I think I would go with option B as well. It seems to make sense.
JE
Jennie
2 years ago
I agree with Macy, because that would give us a 40% margin based on the forecast costs.
MA
Macy
2 years ago
I think the selling price per unit should be $46.20.