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Question
A company expects to produce and sell 20,000 units of a single product. Management desires a 22% return on assets of $3,000,000. The following additional company information is available:
| Variable costs (per unit) | |
| Production costs | $105 |
| Nonproduction costs | $9 |
| Fixed costs (in total) | |
| Overhead | $350,000 |
| Nonproduction | $120,000 |
Compute selling price per unit given that markup percentage equals desired profit divided by total costs.
A. $137.50
B. $33.00
C. $170.50
D. $114.00
E. $122.50
Answer
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