Answer:
Selling price 25.20
Explanation:
We will distirbute the fixed cost among the current used capacity of the plant which is 20,000 units
The company has to produce 30,000 units in order to distribute the fixed cost among ther maximum capacity of 30,000
Variable cot per unit: $15
Fixed cost per unit 60,000 / 20,000 = $3
Total cost $18
Mark up of 40% of the total cost:
18 x 40% = $ 7.20 margin
Selling price per unit:
$18 cost + $7.20 margin = $ 25.20
