Beachside Co.'s Total Unit Selling Price Calculation

What is Beachside Co.'s total unit selling price?

a. $36.80

b. $94

c. $104

d. $92

Answer:

Beachside Co.'s total unit selling price is $39.20 (a. $36.80). Option (a) is the correct choice.

Beachside Co.'s total unit selling price can be calculated using the given information. There are two methods to calculate the selling price for any product.

One is the cost-plus pricing method, and the other is the market-based pricing method. Here, we are using the cost-plus pricing method to calculate the total unit selling price.

Based on the cost-plus pricing method, the selling price is calculated as follows:

Selling Price = Cost Price + Mark-up Percentage × Cost Price

The given cost price per unit for Beachside Co.'s product is $24.50, and the mark-up percentage is 60%. We can calculate the selling price as:

Selling Price = $24.50 + 60% × $24.50 = $24.50 + $14.70 = $39.20

Therefore, Beachside Co.'s total unit selling price is $39.20. Option (a) is the correct option.

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