Bellevue World View is considering production of a lighted world
globe that the company would price at a markup of 25 percent above
full cost. Management estimates that the variable cost of the globe
will be $65 per unit and fixed costs per year will be $180,000.
Assuming sales of 1,200 units, what is the full cost of a globe,
and what is the price with a 25 percent markup? (Round
answers to 2 decimal places, e.g. 15.25.)
| Full cost of globe | $
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| Price with 25 percent markup | $
Assume that the quantity demanded at the price calculated in
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