[CPA Adapted] Purvis Company manufactures a product that has a variable cost of $50 per unit. Fixed costs total $1,000,000, allocated on the basis of the number of units produced. Selling price is computed by adding a 10% markup to full cost. How much should the selling price be per unit for 200,000 units? A. $66 b. $61 c. $60.50 d. $55 The best opportunity for cost reduction is a. during the product/process design phase of the value chain. B. during the manufacturing phase of the value chain. C. during the marketing phase of the value chain. D. during the distribution phase of the value chain.
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