A company’s product has an expected 4-year life cycle from research, development, and design through its withdrawal from the market. Budgeted costs are: The company plans to produce 200,000 units and price the product at 125°!a of the wholelife unit cost. Thus, the budgeted unit selling price is:
A. US $15
B. US $31
C. US $36
D. US $45
Answer:D
A company’s product has an expected 4-year life cycle from research, development, and design through its withdrawal from the market. Budgeted costs are: The company plans to produce 200,000 units and price the product at 125°!a of the wholelife unit cost. Thus, the budgeted unit selling price is:
A. US $15 B. US $31 C. US $36 D. US $45