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QUESTION

The Falling Snow Compnay is considering production of a lighted world globe that the company would price at a markup of 0.25 above full cost.

The Falling Snow Compnay is considering production of a lighted world globe that the company would price at a markup of 0.25 above full cost. Management estimates that the variable cost of the globe will be $62 per unit and fixed costs per year will be $240,000

Assuming sales of 1,200 units, what is the full selling price of a globe with 0.25 markup?

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