What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method

$15 per unit

Explanation:

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Markup = (Fixed Costs + Desired Profit) / Units produced

Markup = ($300,000 + $150,000 + $50,000) / 50,000

Markup = $500,000 / 50,000 units

Markup = $10 per unit

Variable cost per unit = Variable cost / Quantity

Variable cost per unit = ($200,000 + $50,000) / 50,000

Variable cost per unit = $5 per unit

Sales price = Variable cost + Markup

Sales price = $5 per unit + $10 per unit

Sales price = $15 per unit

So, the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method is $15 per unit.

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answer the law of increasing costs;