Mathematics · Cost Accounting
The cost details per unit of a product manufactured by Arbor Co are given below: Direct material = $12 Direct labour = $17 Direct overheads = $7 Share of fixed costs = $12 Arbor uses marginal cost-plus pricing. If Arbor seeks a 40% margin on sales, what is the selling price of the product?
- 1$80.00
- 2$67.20
- 3$60.00✓
- 4$50.40
Correct answer
$60.00
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