Pauley Company needs to determine a markup for a new product. Pauley expects to sell 18,000 units and wants a target profit of $17 per unit. Additional information is as follows: Variable product cost per unit $ 17 Variable administrative cost per unit 12 Total fixed overhead 16,500 Total fixed administrative 69,000 Using the variable cost method, what markup percentage to variable cost should be used?

Well, i would start out by advertising a lot. take money out of unused profit to have build boards put up and internet advertising. also, make sure your store signs are large and noticeable. make sure you have good deals and prices that the average consumer would be okay with. also, location is key. being in a high technology based city/location would be excellent for your business because it is based off of technology. hope this ! : )

The correct answer is (b) the marginal contribution of labor decreases as the quantity of labor used in production increases;