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Question
A company expects to produce and sell 15,000 units of a single product. Management desires a 15% return on assets of $2,000,000. The following additional company information is available:
| Variable costs (per unit) | |
| Production costs | $65 |
| Nonproduction costs | $7 |
| Fixed costs (in total) | |
| Overhead | $97,000 |
| Nonproduction | $23,000 |
Compute selling price per unit given that markup percentage equals desired profit divided by total costs.
A. $80
B. $100
C. $20
D. $72
E. $92
Answer
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