What price should a company charge per unit annually if they want to make a 23% profit on costs of $50,000?

To determine the appropriate price per unit to charge in order to achieve a 23% profit on costs of $50,000, it is essential to first calculate the total cost along with the desired profit.

The total profit can be calculated by taking 23% of the total costs:

1. Calculate the profit:

Profit = Total Costs * Profit Percentage

Profit = $50,000 * 0.23

Profit = $11,500

2. Add the profit to the costs to get the total amount needed to cover both the cost and desired profit:

Total Amount = Total Costs + Profit

Total Amount = $50,000 + $11,500

Total Amount = $61,500

Now, if we assume that the company intends to sell a specific number of units (which is not specified but necessary for a unit price calculation), the price per unit would be the total amount divided by the number of units sold.

If we consider a situation where the total number of units is not specified, the choice of price can be inferred through a common scenario. For instance, if the company plans to sell 500 units:

Price per unit = Total Amount / Number of Units

Price per unit