Ask Question
8 May, 06:48

Nguyen, Inc. has received a bid for 15 comma 000 units. The costing estimates show that the average cost per unit for this bid will be $ 700. The company uses costminusbased pricing and adds 20 % markup to total costs. What total price will Nguyen ask for the entire order? A. $ 2 comma 100 comma 000 B. $ 12 comma 600 comma 000 C. $ 10 comma 500 comma 000 D. $ 8 comma 400 comma 000

+4
Answers (1)
  1. 8 May, 10:38
    0
    B. $ 12 comma 600 comma 000

    Explanation:

    15,000 units x $700 cost per unit = 10,500,000 total cost

    markup policy for the firm: 20% of total cost

    the sales price will be the total cost for the order plus a 20% of that cost as a gross profit margin.

    sales price = cost x (1 + 20%)

    sales price = total cost x 1.20

    sales price = 10,500,000 x 1.2 = 12,600,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Nguyen, Inc. has received a bid for 15 comma 000 units. The costing estimates show that the average cost per unit for this bid will be $ ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers