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Question
A company expects to produce and sell 9,000 units of a single product. Management desires an 18% return on assets of $1,750,000. The following additional company information is available:
| Variable costs (per unit) | |
| Production costs | $79 |
| Nonproduction costs | $5 |
| Fixed costs (in total) | |
| Overhead | $279,000 |
| Nonproduction | $90,000 |
Compute markup per unit. Assume that markup percentage equals desired profit divided by total costs.
A. $35
B. $84
C. $110
D. $125
E. $160
Answer
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